Princeville, perched above Hanalei Bay, has long seemed like the part of Kauai that wouldn’t ever change. That became part of the appeal of this master-planned community, which was developed years ago. Return visitors counted on the sense that Princeville was complete, with its unchanging ocean views and no signs of expansion. However, this summer, that expectation is suddenly being tested by a significant new development pending.
In a Kauai courtroom, a legal fight is playing out over whether a second resort hotel can be built on the Makai Golf Course just uphill from Hanalei Bay. When Princeville was developed, approximately 290 acres of land were set aside under a 1972 dedication letter, which will expire on February 28, 2026.
Now, Starwood Capital Group says that expiration opens the door to building. For travelers who thought this corner of Kauai was done growing, it’s a wake-up call. The master plan may not be as final as it once seemed.
Why this matters to visitors—and residents.
This case goes far beyond zoning codes or expired easements. It’s about a perhaps mistaken assumption, by residents and visitors alike, that Princeville had reached its growth limits. That included the belief that the resort mix was set, with the remaining space protected, and the view toward Hanalei Bay untouched. For decades, that seemed to be the tradeoff: a resort town—anchored by a flashy fountain that feels more Vegas than anything you’d expect on Kauai—but still a measured development.
If this hotel goes forward, it won’t just change the Kauai skyline. It may mark the end of a long-standing belief about what makes Kauai—and the North Shore in particular—different. And it could signal to other developers that old lines drawn on legacy maps are more flexible than they looked.
Why didn’t many see this coming?
Most visitors had no idea the site in question was ever up for development. It sits between the 1 Hotel Hanalei Bay and the golf course, on land used by walkers, runners, and golfers, and framed by open fields many believed were permanent. That assumption was rooted in the original Princeville documents, which promised the area as green space for the community.
For repeat visitors, it’s a potential shift you can feel even before it happens. You come back to Hanalei expecting stillness. You stay in Princeville for the view, the quiet, and the sense that not everything changes. One longtime resident told us, “If they build there, it’s not the same Princeville anymore. It’s just another place.”
A strange detail from Kauai’s past resurfaces.
During early testimony, residents added an unexpected wrinkle: the land may be contaminated. Historical records show that in the early 1900s, more than 500 cattle infected with anthrax were buried across this part of Kauai—some of them on what’s now the proposed hotel site.
There’s no confirmed health risk today. But anthrax spores can persist in soil for decades, and that history alone has now entered the debate. No one knows if it could still matter more than 100 years later. Still, it’s added another layer of concern to this case.
Princeville always felt off-limits for big development. Until now.
We’ve seen this play out in other places before. A small expansion here or there, a new wing or tower—and suddenly the feeling of a place starts to shift. South Maui got denser. Waikiki got taller: driving down Ward Avenue just yesterday, it didn’t even feel like the same place. Even the Kona coast, once spread out and very low-key, filled in faster than most travelers and residents expected.
But Princeville didn’t seem like it would be next. There was something about it that somehow felt settled. Maybe it was the iconic view. Perhaps it was the way the master plan held for years. Either way, that sense of finality is now in question. Even if nothing gets built, the idea that it might has already changed how some people see this place.
How this fits into a larger Hawaii travel trend.
This story doesn’t stand alone. Across the islands, Hawaii has quietly wrestled with what’s finished and what isn’t. A place that once felt settled suddenly gets reconsidered. A plan that seemed locked in turns out to be more flexible than anyone expected.
There’s always tension between economic pressure and emotional expectation. What makes Princeville different is the clarity of the original promise—and how many people assumed that promise couldn’t be undone.
No hotel project green light—yet.
At the time of this writing, Starwood has not secured any building permits. The current trial focuses on whether the original open space agreement, set to expire in 2026, can be challenged now. That decision alone could take months.
The company has stayed mostly silent during the proceedings. However, it has previously stated that it’s committed to the character of the area. Opponents argue that character is incompatible with another luxury hotel perched above Hanalei.
If Princeville changes, what comes next?
Part of what makes this case hit hard is the idea that a plan people trusted might not mean what they thought it did. If one open space becomes a hotel, what’s to stop others from being reinterpreted too?
That’s what gives both Kauai visitors and residents pause. For visitors, you book the same spot. You return to the same lookout. You expect the same quiet. And suddenly you’re not sure that’s something you can count on anymore. For residents, it’s the same uncertainty—you’ve walked these paths for years thinking they were protected.
Princeville might still look the same the next time you come. But if this hotel goes forward, the feeling may not.
We welcome your comments on Princeville and your thoughts on a potential new hotel.
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They can Barely keep the 1 Hotel staffed as is. These money hungry knuckleheads will be out of luck if they somehow get to the finish line with this new hotel idea. Not to mention, if Coco Palms does get rebuilt, all the workers will go there anyway; closer to most of their homes.
I hope I get to visit Princeville before this hotel is built.
I’ve been watching the trial pretty closely via Zoom and there hasn’t been any mention of a hotel. They want to develop the Woods Course into residential homes.
The entire case is a handful of NIMBY mentality that is spreading malicious and fear mongers sour grapes opinions.
Aloha all. I am totally against this hotel to be built. There are plenty of places to stay without another hotel overloading the system on All levels. Traffic, septic, energy and noise. Step back Starwood and develop somewhere else other than Kauai.
To the planning commission in Kauai, please consider the effect a new large volume hotel in Princeville would have on the road between Lihue and Princeville. Every room built will come with a rental car. The road is almost at a standstill still now. 200 more cars on it every day would be a disaster. Please reconsider the possibility of new construction.
Development hinges on having labor to fill the needs. Kauai has very little work force including work force housing! Why think of bringing new development here when you will not fill the positions required to build and staff it.
My draw of Kauai has always been the quiet, especially the North Shore. I love the small town feel hopefully that remains into the far future
it’s called property rights and only way to stop it is to have the county buy it at market value and put it in a land trust or perminent open space
J, in the original Princeville Master Plan, all 27 holes of the Makai Golf Course were to remain ‘Open Space’. Since the Starwood Capital Group want to build on the closed 9 holes of the ‘Woods Course’ (part of the original 27 holes of Makai) they are trying to develop on Zoned Open Space. With everything that has been going on recently with STR’s and too many tourists, the last thing we need is another hotel.
Please don’t change Princeville. The refurbished Princeville hotel regulations that currently exist are more & more restrictive. $25.00 for parking is no longer a consideration. Do Not let this construction take place!
Is it true that no building can be taller than a palm tree?
Use to be…but politicians don’t seem to care. All about the mighty $$
The local people should not be robbed of the original plan. As a tourist, I have never had a problem finding a place to stay. Another hotel is not needed. Preserve the land. It’s part of the vibe, feeling, and current view.
What local people ? This is an entitled prominent white gated community. NIMBY’s. Not on Hawaiian on this lawsuit group of sour grapes.
With the new Poipu Beach Resort, the new Coco Palms development and the proposed new Princeville hotel all on Kauwii, can Disney be far behind? Count on more stoplights on the Garden Isle!
I had read that Starwood Capital wanted to build luxury homes on the Makai Golf Course. Have their plans changed? The anthrax thing is very concerning, and if the land was promised as green space in the CCR’s, how can the property be developed?
I would love to see an aerial view with the exact location outlined. Thanks for making us aware of this situation.
The property of concern is the first 3 holes of the Makai Golf course.
Map Makai Golf Club, Kaua’i. Course holes 1-3 are west of Liholiho Road, bordered by Ka Haku, Road (north) & Honoiki Road (south). Course begins at the Golf Club House on Liholiho Road, plays west, towards 1 Hotel Hanalei Bay, (Starwood), folds back on north side of first hole, plays back east back to Liholiho Road for holes 2 & 3. A striking view along this part of the course. (An abundance of pictures of this course on line.) Once this beauty is lost, it will never be recovered.
In 1917 anthrax infected 500+ dairy animals on this property. All killed & buried in lime. (Insufficient available wood to burn them.) Spores are dry, not destroyed.
Anthrax spores remain viable for 400+ years if not burned. Digging here for a hotel foundation would be a serious health risk to community, golfers & hotel guests.
Triple loss, a 9 hole championship golf course, (becomes 6), scenic landscape & public health risk!
Oh boy, this doesn’t sound good. As someone who has had a Princeville Timeshare for over 30 years at Alii Kai, this would be an unwelcome change to a beautiful place of peace and calm tranquility. In Princeville you an “actually hear the quiet.”
What ever happened to the land where the old Hanalei Plantation House was located back in the day? I remember staying there a few times in the mid 1960s and early 1970s.
Aloha to all
As a lifelong citizen of Honolulu, I don’t really have standing to comment positively or negatively about Kawai.
However, this article demonstrates the limitations, negative limitations of Hawaii as a state.
While this website focuses on how you travel one can see the deplorable state of Honolulu International Airport, the train to nowhere, the protest against the superferry and many more things. It seems that there is no appetite for growth or improvement rather stasis and stagnation.
As I tell my friends on the mainland, Hawaii never ever gets better. It just gets worse and more expensive. Entropy visualized.
I’m not sure what you mean about no growth on Oahu. You would think the official bird here is the crane as there’s non-stop construction. However you feel about the train system, there is one now where there once wasn’t. The Honolulu Airport has expanded which also appears to be growth.
How you describe the islands to your friends make it appear you are more than fed up with the islands. Maybe it’s time for a move to a different state.
It was paradise but we continue to cover it up with parking lots.
Hanalei Plantation Resort/ Club Med came and went, then there were rumors in 2000’s of a new super deluxe hotel next to the Princeville. It is nothing new. We have HBR, the Westin the Wyndham etc. i have seen Princeville degrade over the years with new condo’s blocking the view. I do not think the area in question is suitable and what worries me is it will be another white elephant which will decay after developers make a bundle and the purchasers go bust.
Is the proposed location where the hurricane-wrecked Club Med was? Or has somebody already cleaned that up and reused the location?
Mom and pop short term rentals gotta go. Big hotel chains, not so much.
Can you post a map or a link to one that would show where it would built?
Trying to picture in my mind where this would happen.
BTW… I’ve been staying in Kilauea for the last month, with 2 weeks to go, and I’m happy to report that the Aloha spirit, at least in my experience, is alive and well.
Hey Patrick, the only piece of land above the bay, has to be just south, behind the Hanalei Bay Resort towards Hanalei Plantation Road.
Are you talking about all that grass area and green space? I thought that was mostly golf course.
I’ll have to take a closer look next time I’m over there.
It’s the Makai golf course along Ka Haku Road before the 1Hotel Hanalei Bay; pretty much the middle of Princeville.
Yes, it’s the Woods course where the disc golfers use it now.