Aqua Hotels & Resorts tomorrow takes over management of its 13th property in Waikiki, the Park Shore Waikiki Hotel near Diamond Head.

The hotel is owned by Sasada International LLC of Japan, the company that bought the 40-year-old hotel last year.

Company chairman Masanori Sasada today formally announced the selection of Aqua Hotels & Resorts, a Hawai'i-based hotel management company, to provide management services for the 226-room hotel.

The company aims "to reposition the hotel to luxury boutique level and to reinvigorate its prime corner location at the diamondhead end of Waikiki," said Geoff Graf, a consultant to Sasada.

Graf said renovation will begin by next year although he did not yet have exact dates and dollar amounts. "A multimillion-dollar renovation is currently envisioned to start in April 2009 and be completed in June 2010," he said. Officials said that amount will likely be between $10 million and $15 million.

Sasada International said it is committed to implementing "green" initiatives at the Park Shore both during and after the refurbishment. The company said it has been working with the architecture firm of Philip K. White & Associates to apply environmentally sustainable practices before, during, and after the renovation process.

He said the company aims to have a "green hotel" for guests, work with the community and achieve Leadership in Energy and Environmental Design certification for the hotel.

Owner Sasada sees Aqua Hotels as a good fit for management of the Park Shore after seeing what the company has done at other properties "in converting under-performing properties into unique boutique hotels that deliver outstanding guest service," Graf said.

Aqua Hotels & Resorts was founded in 2001 by Hawai'i hotelier Mike Paulin. The Park Shore is the third addition to Aqua's portfolio in 2008, increasing Aqua's chain-wide inventory to 13 smaller properties in Waikiki.

According to Bill Henderson, Aqua's vice president of development, there is no initial plan to change the name.

"The Aqua team is excited about celebrating Park Shore's 40th anniversary this year, and we are equally excited about collaborating with the owners to launch the "new" Park Shore Waikiki Hotel," Henderson said.

He said the hotel, which looks out on the beach and the park, has great potential. "Nothing's ever going to block those views," he said. "I think it's historically been underperforming."

Sasada International LLC, a Hawai'i limited liability company, purchased the Park Shore Waikiki Hotel from The Blackstone Group in 2007. Sasada is also the founder, chairman and CEO of the parent company RELO GROUP, a Tokyo-based firm that provides consulting services to business entities offering employee benefit services.

RELO GROUP companies have enjoyed growth and expansion and expect sales to exceed $1 billion in the next fiscal year. In Hawai'i, the company operates as Hawaiian Relocation Inc., offering consulting and management services for real property investments.