Key facts
- Developers secured a $431 million loan to reconstruct the Coco Palms hotel on Kaua‘i.
- The resort, closed since 1992, will be renamed Coco Palms, A Kimpton Resort, with a 2028 opening target.
- The financing includes $186 million from X-Caliber and $245 million through its C-PACE affiliate.
- Demolition work has begun, with major construction slated to start in early 2027.
- Skepticism remains due to the project's long history of delays and opposition over cultural and environmental concerns.
Developers behind the planned rebirth of Kaua‘i’s Coco Palms hotel have secured a $431 million loan to reconstruct the historic resort, which has been closed since 1992. The project, now named Coco Palms, A Kimpton Resort, aims for a 2028 opening. The financing includes $186 million in conventional loans and $245 million through a Commercial Property Assessed Clean Energy (C-PACE) program.
Despite the new funding, skepticism about the project's success persists due to a long history of failed attempts and delays. Former state senator Gary Hooser expressed doubt, citing previous developers' unfulfilled promises. The project has faced lawsuits, protests, expired permits, and concerns over Native Hawaiian burial grounds.
Demolition work began in 2024, with installation of utilities and restoration of parking garages to follow. Major construction is slated to start in early 2027, with the developer anticipating over 1,000 construction jobs and 350 full-time positions upon opening.
Critics, including Hooser and community advocate Mason Chock, fault the use of outdated zoning and building standards, noting the hotel's location in a flood and tsunami zone. Concerns also extend to traffic congestion on Kūhiō Highway and the site's cultural significance as a burial ground for Hawaiian royalty.
Proponents highlight the project's potential to revive a beloved landmark, immortalized in films like "Blue Hawaii" and frequented by celebrities. However, advocates like Chock and the nonprofit I Ola Wailuanui emphasize the site's importance as an ancient religious and political capital, urging preservation over commercial development.