Nonprofit Offers $8.5 Million for Former W Hotel

Unity House Inc., a nonprofit organization that serves union workers, bid $8.5 million for the Lotus Diamond Head Waikiki hotel on Aug. 18 at a Honolulu foreclosure auction.

Formerly the W Honolulu-Diamond Head, the property is currently managed by Castle Resorts and went into foreclosure while owned by developer Brian Anderson.

The Unity House bid was 5% more than the $8.1 million offer made by Central Pacific Bank, which was preceded by a $5.7 million bid from First Hawaiian Bank. Both banks hold mortgages on the property.

The sale must be confirmed at another hearing that will likely be held sometime next month. The 51-room boutique hotel remains open for business.