In 1961, a good portion of the Elvis Presley film Blue Hawaii was filmed at the Coco Palms Resort Hotel, on the Hawaiian island of Kauai. Originally opened as a small lodge in the early 50s, the hotel, located in the Wailua area of southeastern Kauai, continued to grow throughout the decade, eventually turning into a resort with over 400 rooms. For a time, the resort was a popular destination for Hollywood royalty, including Frank Sinatra, Rita Hayworth and Bing Crosby
Postcard of Coco Palms during its heydays
The Coco Palms did well for years. However, when Hurricane Iniki, a Category 4 storm that was the most powerful to strike Hawaii in recorded history, hit Kauai in 1992, the resort was destroyed and closed.
Coco Palms Ventures, based in Maryland, purchased the property in 2005 and in 2013, Coco Palms Hui LLC was incorporated. They, in conjunction with Hyatt Development’s Unbound program, began demolition of the old structures in preparation for the construction of a new resort, then scheduled to reopen in early 2017. But there were delays, which were followed by Coco Palms Hui LLC defaulting on their loan in 2018 and all work, of course, stopped.
A new beginning
By 2022, Utah-based developer Reef Capital Partners won the auctioned property as the only bidder. Following going through some red tape and planning, the property was finally OKed by officials late last year for demolition and rebuilding.
Removal of the badly dilapidated hotel structures began in March 2024.
“We are deeply committed to being responsible stewards of this historic landmark,” said Reef Capital Partners CFO Jon Day in a statement. “As new owners, we hope that fulfilling the promise of removing these structures after decades of past failure is a clear demonstration of our commitment.”
The restored Coco Palms resort will have fewer guestrooms than the original, decreasing to 350 from the resort’s 400+. The resort will also boast a cultural center, spa and taro farm. The project will also involve a revival of several dining venues from the original Coco Palms, including the Lotus, Flame and Seashell restaurants.
Trouble in paradise
Unfortunately, the new resort doesn’t have its naysayers.
The land where the original resort sat is one of the most sacred historical and cultural sites in the entire state. In the 19th century, the property was home to Kauai’s last queen, Deborah Kapule. It’s also the site of the island’s oldest coconut grove, ancient fishponds and burial sites. So throughout the decades, there have been lawsuits, on and off, because of how the Coco Palms property had been used. That litigation continues today. Most recently, I Ola Wailuanui, a nonprofit group that opposes the new hotel, says the original hotel should have never been permitted in the first place because it was built on sacred Native Hawaiian burial grounds, and a new hotel shouldn’t be allowed today.
Besides the past issues regarding culture, some residents said there’s already too much traffic in the area and the property should instead be preserved as a cultural site. However, Reef Capital Partners has said that only 10 acres of the property will be used for the new project. They also promised to engage in “archeological and cultural monitoring” throughout the project and that it has tapped a cultural advisory committee of local Native Hawaiians to “help guide restoration of the site.”
Reef Capital Partners managing partner Patrick Manning said: “Even though we know there are many that don’t want it rebuilt, we intend to be viewed and earn a reputation for doing everything we can to honor its past and respect the people of Kauai and guests of Kauai and how we manage its future.”
The (new) Coco Palms is currently scheduled to be completed in 2026.
Our experience
When Joe and I went to Hawaii in early 2022, we included a multiday visit to Kauai – our first visit to the island. As it turned out, we went past the Coco Palms several times, since it was on Kuhio Hwy, one of the main roadways between the north and south shore of the island. At the time, we had no idea what we were looking at. We could tell it had once been a huge hotel, but that was about it. I did a little Googling at the time, so I knew about its past with Elvis and Blue Hawaii and that it had sat there, languishing, for just shy of 30 years.
There were construction vehicles scattered about the property when we went past, but no one was manning them.
If nothing else, the remnants of old, decimated buildings are certainly no way to preserve the culture of Kauai.
Feature Photo: Reef Capital Partners
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7 comments
It’ll be interesting to see if this actually reaches completion. I wouldn’t bet on it.
If it does, I don’t see the business viability of it. Back in its heyday, the location must have been pleasant enough. Now, it sits across a busy street from a rather unimpressive beach. For the economics to work, the room rates are going to have to be high, but I struggle to see many people being willing to pay a high rate for this location given all the other, better options on the island. Would love to be wrong though.
Do you know how many times this “it’s getting rebuilt” story has come up… countless times. I’m will to bet any amount with anyone that nothing will be built (hotel) on that property in the next 10 years.
TBH, I’m kind of questioning if this new Coco Palms will ever come to be, as well. That being said, I think this is only the 2nd time planning has gone so far as to start removing old, dilapidated buildings from the property. So there’s that.
I honeymooned there in 1979. They were famous for the torch lighting ceremony.
Stayed there in the late 1980’s. was a beautiful place
We stayed there twice in the little thatched cottages behind the main hotel. We loved it. I can still see the pig in a spit roasting on an open fire out side. There was music and entertainment at the restaurant every night. We would have returned many times if it hadn’t been for the hurricane destruction.
My wife and I celebrated our 20th wedding anniversary at the Coco Palms. Returned in 2015 to renew our vows on our 50th anniversary on the site. Many wonderful memories.