ML&P AND MIRAVAL END ALLIANCE TO DEVELOP KAPALUA RESORT

Share this
Maui Land & Pineapple Co. (ML&P) and Miraval Holding LLC said in a joint statement that they have ceased negotiations to form a joint venture to develop three luxury spas/health centers at Kapalua. Hawaii's first multifaceted health and wellness community, as they called it, was projected for groundbreaking in early 2006.

In September, 2004, ML&P announced plans for a next-generation health spa in alliance with Miraval: Life in Balance.' 'Miraval and Kapalua are made for each other,' said ML&P CEO David Cole in September. 'We will invigorate our employees, residents and guests to achieve greater levels of well being.' 'We are thrilled to announce the very first expansion of Miraval,' said Miraval CEO Jack O'Donnell in September. 'Our partnership with Kapalua will imbue the Miraval experience of rejuvenation and relaxation with the aloha spirit and organic powers of Hawaii, culminating in an authentic connection with self and environment.'

ML&P Chairman David Cole said the 'wellness community' still will be built, with no delays, and that Kapalua Resort might operate the spas itself. 'We're perfectly capable of going it alone,' he said, but would not rule out the possibility of finding another partner. The original announcement said there would be three spas: a destination resort spa at the heart of the resort with a luxury residential community, a Mountain Adventure Spa to emphasize outdoor activities like golf, riding, biking and hiking, and Kapalua Oceanside Spa. The original proposal also included a lifelong wellness and personal development center for employees within the Kapalua community. Besides the three spas, ML&P also intends to rebuild the Kapalua Bay Hotel in partnership with Marriott and Exclusive Resorts.

Cole said the negotiations broke down over the locations within the resort of the spas. It is ironic that ML&P and Miraval could not agree, as they share a common majority stockholder--former AOL CEO Steve Case. Case owns a 70 percent stake in Miraval, and is also the largest owner of ML&P shares and Exclusive Resorts.

Case has unveiled to BusinessWeek the details of his new company, Revolution, a private holding company that Case is funding with $500 million of his estimated $825 million fortune and that will invest in health care, wellness, and resorts. BusinessWeek reported that Case make an offer for a controlling stake in Canyon Ranch on early 2004, and contacted Miraval when they couldn't come to terms on a deal. Case envisions local 'wellness' centers in 100 communities across America, all offering Miraval programs.