One thing you can definitely say about Coco Palms is that it forever remains at the forefront of Kauai news and people’s minds. With nearly 400 comments about the resort, your feelings are clear.
When we wrote about it nearly a year ago, the saga continued with an odd foreclosure sale. Since then, your editors have frequently drive by the once luxury resort (see video below), and it never ceases to amaze us. It sits there, an ugly old decaying concrete shell. Truly an eyesore.
There are no signs of demolition and to our understanding there are no demolition permits. Instead, building permits from years ago are still pending and those are found below.
Coco Palms was sold again last year.
A scheduled foreclosure auction took place at the Fifth Circuit Courthouse near Lihue Airport in July 2021. Alas, there was only one bid, and there’s a new owner, sort of, at least for now. The property was sold in “as-is” condition.
One commenter on Facebook said what many of us were thinking, “I was dreaming that one notorious billionaire from the north shore would buy it, tear down all the man-made structures and donate it for a cultural park and parking for Wailua beach.” (Margaret Goode).
Neal McManus added, “It seems that a team of multimillionaires and certain billionaires that enjoy the island could “pitch-in” and have the parcel restored, made into a multi-use Hawaiian cultural space/center for the Kauai community. The resultant development could be endowed in the same manner and intent that Duncan McBryde did with Kukuiolono with the county of Kauai.”
In the end, however, the company Private Capital Group, paid $22 million for the land. The bid was actually a credit for the original principal value of a loan obtained by the prior developer. The new buyer was the lender for the previous owners who defaulted on their debt during the last of a string of failed efforts to rebuild the hotel. That plan, which would have turned Coco Palms into a 350-room resort, began in 2015 and then changed hands again in 2019 through a massive mortgage default.
Being the new owner in title, Private Capital Group can now move forward to try to sell it yet again. No one knows exactly what their next move will be.
Read more about Coco Palms:
Breaking: Coco Palms Plans Explode In Bizarre, Emotional Hearing
60 Years Ago Elvis’ Blue Hawaii + Jets Transformed Hawaii Travel
There’s no place for a new Coco Palms Resort. So what about a park?
The county was moving in the direction of wanting the former resort to become a park. But even that seems to have gone quiet.
Coco Palms wouldn’t be viable any longer as a hotel, for a myriad of reasons, as you’ll read below. Among them, the property is located on what’s become a very noisy stretch of Kuhio Highway, with no beach access. In recent years, many hotels have been built that, while not Coco Palms, offer beachfront locations at prices that undermine any potential for profitability.
The idea of a park has been floated for many years. BOH editors’ friend and Kauai Council Member Felicia Cowden asked that Coco Palms be “set aside for a future community wilderness or cultural park. Those prime, historically significant lands should not be attached to the problematic private pieces to help move a distressed asset.”
When we last reached out to Felicia about this, she replied that she doesn’t believe that the County has the financial resources to acquire the property. “Hopefully, the county will consider it; however, I don’t think we can afford it. A best-case would be a friendly buyer, and that is where I will focus my efforts.”
Ultra-popular Coco Palms of the past. Still Kauai’s most iconic and most infamous resort ever.
Kauai Coco Palms Resort’s enduring popularity is unending. The unexpectedly awful eyesore and safety hazard on the island after being largely destroyed nearly three decades ago during Hurricane Iniki, continues.
This was where the rich and famous once stayed, and Elvis Presley’s Blue Hawaii was filmed. The property consists of 20 acres fronting the highway at Wailua Beach, combined with 15 acres of state-leased land.
This post-series has now been read more than a quarter-million times, which is a good indication of your love of and fascination with Coco Palms. We, too, enjoy reading your hundreds of fascinating comments depicting fond memories of Coco Palms and ongoing dreams for its future.
Demolition rumors.
We continue to anticipate, as we reported last year, that Coco Palms will eventually be demolished. However, we were never able able to verify rumors that it was inevitable last year. When we checked, the county wasn’t aware of demolition permits being issued.
All essential concrete structures failed.
The original building core was to be an integral part of future development. That, however, became impossible when steel rebar within the buildings’ concrete corroded and failed because of exposure to ocean salt and moisture. The corroding steel cracked the concrete and spall due to the swelling and increased tensile load on the steel. That issue began on the upper floors, then expanded to affect the entire infrastructure.
More reasons Coco Palms can never be a hotel again.
Kauai’s prior mayor JoAnn Yukimura, said development permits “should have never been issued.” She bemoaned that Kauai has too many hotels as it already stands. “Removing the cloud of resort development from the property will enable the community to come together around a new vision for that site — a vision that could include a park and culture center that interprets the history of the place.”
Another BOH editors’ friend Allan Parachini, jokingly wrote on his Facebook page during Covid about Coco Palms Resort: “I am so happy to hear today that Kauai County has officially designated a Quarantine Hotel for the duration of the COVID-19 pandemic…As you can see, all of the accommodations have plenty of fresh air.” As we said, “Elvis has left the building.”
Coco Palms current condition.
The last round of attempts disintegrated with multiple developers unable to make it work—all to the chagrin of visitors, locals, and the Kauai County government.
When driving by, you see enormous amounts of ugly, original concrete and steel, as in the image below. The developers had planned to use these preexisting steel, and concrete structures as the base of the new resort before those plans were terminated by nature and finances. The iconic lagoon was also set to be restored, as is shown in the image depiction above.
Beat of Hawaii: Coco Palms sits largely unchanged, destroyed through hurricanes, fraud, neglect, and to this day, ongoing controversy for over a quarter-century.
In 2016, a multi-million dollar selective-demolition project was completed. This included drywall and asbestos removal, electrical and mechanical repairs, renovations at the Lotus Restaurant, and bungalow building. It pretty much was stripped clean. And it has sat virtually untouched since then.
Status of building permits.
There are fourteen pages of building permits in various stages for Coco Palms Resort that can be found here. Search by name and enter Coco Palms.
Could Zuckerberg still play a role?
Turned into a historic park or something similar via a gift to the county or otherwise, this could be a way for the island’s wealthiest to make a very favorable impact. Kauai is Zuckerberg’s island home. Who else might help out?
Another commentor about the sale offered this, “Sounds good. Too risky to do anything, lender playing money games, price is low enough for the state to buy it. Great work!” (Robert Gluckson)
Did you know these Coco Palms’ details?
1. A once planned connection to the Koa Kea Resort was dropped. The last developer was rumored to have been in discussions with the Meritage Collection about running the Coco Palms in addition to Koa Kea.
2. Reopening as a Hyatt property was also aborted. In 2014, the plan was for Coco Palms to reopen in 2020 with 273 rooms, 77 suites, 3 restaurants, a cultural center, 12k square feet of retail, and more. It was then to be part of the Hyatt Unbound Collection.
3. In 2017, a dispute arose when a group of Native Hawaiians claiming to be descendants of Kauai’s King Kaumuali’i began living on the property. A judge refused to remove them from Coco Palms while determining their rightful owners. Developers said, “The county recognizes us as the owner of the property.” The court affirmed that in 2018.
4. The land is considered ancient Hawaiian royal property, and disputes have been ongoing since the 1800s.
See our recent drive-by video.
We welcome your comments.
Updated 4/21/22
Disclosure: We receive a small commission on purchases from some of the links on Beat of Hawaii. These links cost you nothing and provide income necessary to offer our website to you. Mahalo! Privacy Policy and Disclosures.
Chris E. says
Has anyone thought about developing the property as an events/wedding, exclusive restaurant and garden venue instead of a hotel resort. This way the property is kept more natural and exclusive but still sort of making a profit for maintenance without destroying the ambiance.
Rjz says
The eyesore should have been torned down 30 years ago it was an eyesore before the storm hit , Elvis n all there cronies all left the building,itallon the counties hands to do something with it . Kauai need an updated hospital n care center especially for the elderly n children for those who live there , if money is the problem start taxing these weekenders from California that are not permanent residents , the ones with multimillion summer homes start taxing those people accordingly the county would have enough to finish the eyesore , also I can’t understand why the county keeps turning down attempts for affordable housing .isthisthe results of the rich from California don’t want affordable housing on there island ,
JA says
Aloha,
well said, someone’s palm is definitely getting greased and even though my thoughts on this former resort matter and all the issues that are surrounding it over the past 30 years I prefer the word extortion! in my opinion that is what’s going on here
MJ says
I have commented many times on this thread but I just have to reiterate a fundamental fact. For Decades this has been a piece of Comercial Property. It is in the best interest of Kauai that it be restored to a revenue generating (taxable) venue. I agree that the current owners should be given a realistic timeline for progress, but the notion of seizing the place is not Aloha or American!
Bob B says
There has been a Casino Hotel in Carson City NV, built in 1974, been shut down for 20 years or so almost across from the State Capital building. The City Council got tired of it standing and forlorn for so many years and gave the property owners an ultimatum to “do something with it”. The owners answer? Fine! We’ll demolish it to bare ground, and you’ll lose the Property Taxation value of commercial developed property (all though not operational). City Council backed off Very quickly no further action as far as I know. So even in it dilapidated condition it’s “developed” and taxed at a higher value than bare ground. That is If the system in HI works the same as in Nevada.
Stefan M. says
Has anyone had a spiritual experience on the property? I was in the Grove in back, not long after Iniki. It was night. The entire sky was covered in clouds. It was raining very lightly. I can attest to the sacred nature of the land. Very powerful indeed.
Susan G says
I was there in 1968 for 1 day. I was just there 2 weeks ago and was so disappointed to see the shell it has become. It should be made into a cultural center.
John B says
My wife and I honeymooned at Coco Palms in 1978 and it was wonderful. It’s sad and tragic that something can’t be done with CoCo Palms. Even a park would be preferable to the rusting hulk that is there.
Chris says
I believe it is still too early to open. We are still in a pandemic and it’s irresponsible to open until at least 2024. Many people are neglecting their Booster shots causing this pandemic to linger on longer than it needs to be. Just look at China as they are still in lockdown. If we don’t get more people boosted, this will happen to us.
Rich D says
tgi says that tourism in Kauai has bounced back to pre-Covid numbers. Is it possible for the county to finance taking the structure down and leave the grounds as is? With all the abandoned cars that I see maybe that is asking too much.
Beachinmom808 says
When you ask that question the county say that they have no money for that and the same answer from the State…
MJ says
I’m going to lay out a vision I had while dreaming about this dilemma. What if the county authorized a second level “promenade” of sorts over the highway to tie Coco Palms with the beach? A very attractive design that went well with the land and effective tunnel of the highway underneath? Of course I am in favor of the entire Kahuna on designated part of the property and maintaining the look of the original lagoon plan that I outlined earlier, but this might be a “beach tie” that was preventing other plans. Had anyone proposed this yet?
Greg says
Terrible idea for many reasons. I’m assuming you do not live in the Wailua area because if you do, then an open resort in this location would contribute greatly to traffic & congestion. The beach is an extremely unsafe swimming beach much of the year with no lifeguards and the water quality is also quite bad.
Larry p says
The Kauaʻi county planning committee is responding to a petition for a declaratory ruling on a clause of the planning rules that says that if a developer does not make significant progress on a development within 2 years of when the permit is granted the permit is no longer valid. The committee has heard the testimony and arguments and are now in an executive session. I am waiting for their ruling.
As few of us knew what a declaratory ruling is the public testimony, and there was a lot of it, was heartfelt declared reasons why re developing the Coco Palms site as a resort was a bad idea.
MJ says
P.S.
If they granted automatic extensions for all other permits due to COVID (which I believe they did) they’d be in legal limbo if they singled out this permit holder.
Z says
It’s been an eyesore for 30 years now. The hotel before the storm needed a major renovation back then. I know there is sacred land within the confines . So that should stay separate away from any development to make people happy. Kauai doesn’t need another high end hotel n more traffic, look at what kauai needs an updated hospital affordable housing , senior center with health needs, maybe a park where everyone can enjoy , like they say Elvis left the building leave it at that forget about the past n start anew , make the property work for all of kauai .
Ramona L. says
Aloha. In 1989, I got married in the little chapel at Coco Palms. It was beautiful. Being of Hawaiian decent, I am very proud to have gotten married on Sacred Hawaiian Royal grounds. Love to see it cleaned up, keep original structures and keep it sacred.
Claude C says
My wife and I used to live on Mala Street years ago, it was always a delight to drive home along the beautiful Coco Palms. I was in the tours business at that time, bringing lots of Europeans and Canadians at the hotel and knowing they would be enchanted to visit such a special place.
Now, We go back to Kauai every year and each time driving by, my heart sinks witnessing such a decay. Rather than trying to revived what has been I hope a beautiful public park would be built.
Thank you and Aloha
Susan G says
I’m glad I stayed there in 1968. Only for a day but it was beautiful.
Daniel F. says
Just an overnight for me (’86), too; yet the cherished memory remains.
gladys k says
Al Harrington had a wonderful show at the Hilton Hawaiian Village….truly a South Seas spectacular…..everything authentic….you can see it on you tube…..he was truly a gentleman….stood & took photos with anyone who wanted them….& didn’t charge a penny!!!!
Ronald W. says
I didn’t know that Al Harrington had a show.
Darrell D says
44 years ago today my wife and I were on our honeymoon at the Coco Palms. It was magical and we were remarried there. Twice. 6th anniversary and 25th The 25th was behind a fence surrounded by ruins, but the place has always been special for us. I hope the residents find a solution that makes them happy.
Ron W. says
I remember Coco Palms well. Back in the 70s our family went there. I remember the large sea shell sinks and how beautiful the place was. Sorry it’s in such a sad state.
Daniel F. says
Stayed there once. Loved thesink and had a drink in a pineapple!!
Ron W. says
Oh and I also forgot to mention when we were there, the original Hawaii-5-0 (the better version)was filming there.
Bob B says
Ron you mean the “REAL” Hawaii 5-0 👍
Ron W. says
Yes the real Hawaii 5-0. Jack Lord oozed Steve MaGarret.
Mj says
Okay, here’s some REAL Five-O trivia: I just spent 1-1/2 hours with Kimo Kahoano (It’s Aloha Friday song and former radio show). He was a guest on many of Hawaii’s show and told us that Jack Lord was a VERY SERIOUS actor and co-produced of the show. In fact, when it came to Al Harrington (Ben) and Zulu (Kono), one of them (can’t say which) was clowning a bit too much and got released from the show!!
More good stuff to come!
Beat of Hawaii says
Hi MJ.
Good to hear from you again. Thanks.
Aloha.
Ron.W. says
I wonder if it was Zulu. We went to his nightclub show in Honolulu once. I heard that he was a cutup and his show was pretty good if I can recall.
Ron W. says
I just read it was Zulu that was fired by Jack Lord. Supposedly he uttered a racial slur and Lord had him fired.
MJ says
Okay, I will update you now so the wrong idea isn’t out there. Kono was fired, but it was for an ethnic, not a racial slur. I was referring to Al Harrington being let go due to his clowning around. With all his shows in Waikiki he didn’t take Jack seriously enough.
Ronald W. says
Ok. Thanks for letting me know.
Will P says
Please please consider