Latest on the pained Kauai Coco Palms Hotel, Kauai’s first and arguably most iconic resort ever. The place where the rich and famous once stayed and where Elvis Presley’s Blue Hawaii was filmed.
The developers have just defaulted on an $11M loan and the property is now facing imminent foreclosure. Doubt about the project’s viability had been widely discussed well before this kibosh. We drove by again this month and were amazed that other than the construction fences no longer obscuring the remains, nothing else had seemed to change in years. All that has happened is that the project completely disintegrated when developers were unable to acquire additional funding required. All to the chagrin of visitors, locals and the Kauai government.
Previously, the Kauai resort had been scheduled to reopen in 2020 as a Hyatt managed property with 273 rooms, 77 suites, 3 restaurants, a cultural center, 12k square feet of retail and more. It was set to be part of Hyatt’s Unbound Collection, a group of upscale luxury properties. Living here, someone we just didn’t believe this would really come to fruition.
Coco Palms Kauai | Resort Project Returns to Dead Standstill
When you drive by, you’ll see a great deal of the original concrete and steel, as in image below. The developers, now in default, planned to use these pre-existing steel and concrete structures as the base of the new resort. The iconic lagoon was also set to be restored as is shown in image above.
Past 24 months. Very little that’s obvious has taken place in the last two years at Coco Palms Resort. It had been looking more every day like a project destined for nowhere.
There is always talk about an alternative plan for Coco Palms, such as a county park. This is something that has been suggested for years. How that would happen, however, and where funds would come from to undertake such a process, is totally unclear. Kauai’s new mayor has supported such a concept, at least in theory.
Until something more happens, Coco Palms sits largely unchanged, destroyed through hurricane, fraud, neglect and to this day, ongoing controversy, for over a quarter century.
More big problems at Coco Palms.
1. Following demolition, construction was to have begun in spring 2017, but never occurred. Dozens of building permits are as far as we know still pending. We kept waiting to see something, anything happen, but still there was no development.
2. Then in 2017 a land dispute arose when a group of Native Hawaiians claiming to be descendants of Kauai’s King Kaumualii began living on the property. A judge refused to remove them from Coco Palms as more information was needed to determine the rightful owners. The developers have taken the position that “the county recognizes us as the owner of the property, and so we see it as criminal trespassing.” That position was affirmed by the court in 2018, when a summary judgment hearing ended the dispute.
3. Ongoing flood zone concerns. We’ve heard that county engineering is saying that the resort, if rebuilt, would need to comply with current flood abatement standards. Those did not exist at the time of the original resort. That could result in significant unanticipated costs and delays in order to flood-proof large areas of Coco Palms. We aren’t aware of any update on this issue.
4. Is there a current market for Coco Palms Resort? If the resort is ever rebuilt, how it can position itself in relation to other nearby Kauai hotels isn’t clear. Coco Palms is directly located on a very noisy stretch of Kuhio Highway, with no beach access. The idea of a pedestrian bridge has be thrown around, but we aren’t aware of any specific plans. In addition, competitive hotels have been built in recent years that, while not Coco Palms, offer beachfront locations at prices that could well undermine the potential for profitability.
Image courtesy of cocopalmskauai.com.
Updated 3/27/19.
NANCY H. says
June 15, 2019 at 8:23 amI was married in the Fern Groto and honeymooned at Coco Palms 7/1/1988, an incredible spiritual place. Why can’t Coco Palms be cleared and built back exactly as it was, not more opulent, bigger or better. Can’t we preserve some history? And that’s all I have to say about that, Forest Gump. Hotel developers around the world, thanks for listening.
BC says
June 2, 2019 at 1:19 pmI stayed at Coco Palms as a child in 1968. The most memorable thing to me of that trip was when we had dinner at the restaurant there, and our waitress walked out in the middle of her shift, so our dinner was hours late! I kept a diary of that trip and I wish I still had that now.
I’m a ukelele player now, and was watching Blue Hawaii to transpose some songs, and gosh, the Coco Palms sure was gorgeous. I kind of wish I’d been older on that trip so I could have appreciated it more.
Ken B says
June 12, 2019 at 12:18 pmI understand each of the various positions. As a haole who lived on the islands for several years, and returns every year I truly miss the Coco Palms. Real Hawaiian spirit, locals for the floor shows, Mrs G welcoming you, and Big John. It was a different world and the way people thought Hawaii should be. Unfortunately I don’t think economics will ever allow us to return to those days, very, very sad. I would love to see the grounds restored as a park.
Gary G says
May 30, 2019 at 8:24 amI stayed at the Coco Palms during a high school graduation trip in 1979. It was the most memorable part of the trip for me. Everything about it; the palm grove, tiki torches, outdoor showers, clam shell sinks, and back in 1979, the set for Fantasy Island. It all made for an amazing stay. I’m sad that its revival has failed, but it’s been so long for me that I have no opinion for whether it should be rebuilt. It sounds like the locals believe it should be taken down and not restored, and the land repurposed… and I guess I’d have to defer to their opinions since they live there. But the Coco Palms will live on fondly in my memories!
fh says
May 26, 2019 at 1:41 amThis does not make me sad. Kauai needs to stop building so much. Although iconic, I don’t believe that Coco Palms needs to be rebuilt.
Z says
April 24, 2019 at 8:06 amHere you go kauai now you got the land to put up low income housing or a senior center or maybe a second hospital .so all this hype on coco palm was all bs. The mighty Hyatt couldn’t pull a rabbit out so kauai county use your head n use it for the people were it should have gone all along.
Randy T says
May 21, 2019 at 12:15 pmexcellent idea!
Annetta V says
April 11, 2019 at 9:05 amI have been waiting and waiting for the re-opening and I am now so very sad. I was there in 1986 and again in 2008 to see the ruins. I brought back some items (a menu, lamp shade, etc.) from the site to keep with my memories from 1986. I also bought the book, The Story of Coco Palms. I will cherish them for life. I was so hoping to return. I’ve traveled the world and Coco Palms has always been my favorite. There are more people than you may think that love Coco Palms. I was even hoping maybe Elvis’ family would have stepped in. Guess they don’t care either. I’ll bet Elvis would have stepped up. So very, very sad.
Colleen D. says
March 30, 2019 at 6:40 amReally appreciate the update. Visited Kauai three years ago, and took the little walking tour through the CoCo Palms. The history of CoCo Palms is amazing, but it’s history, can’t bring it back. Kind of knew the rebuilding wasn’t in the cards, hope someday something beautiful will take it’s place, whatever it might be. Thank you, please continue to keep us all posted on any news.
Bud says
April 7, 2019 at 2:26 pmWe honeymooned there in June 1972 and were looking forward to returning in 2022 for our 50th. Doesn’t look good.
Richard G says
March 28, 2019 at 3:48 pmLike the 12 Ft Satellite Dish, the Palms days are over. I always wondered if a decent swell went across the Hwy how a rebuilt facility could handle it? No Beach…..too close the water with the current elevation….a recipe for Disaster if a large wave came across the Kuhio! I am certain not even Mark Z would try to develop it based on the proximity to the water
(no beach), low elevation and the cost to do it.
It will be Hawaiian Airlines for a least a year or two until SouthWest builds a track record! It’s a bit too far from the Mainland for any issues!
You guys are doing a great job with your info and site as always….Mahalo
Beat of Hawaii says
March 28, 2019 at 9:18 pmHi Richard.
Thank you!
Aloha.
Michael M. says
March 28, 2019 at 8:46 amWhy the ‘developers’ EVER thought they could pull this much needed reconstruction off is a complete mystery. Anyone who has ever worked with any part of the Hawaii county government, in this case Kauai, knows full well – they will tell you one thing and then do something entirely different. Permits? Really? Good luck with that. You would have a better chance of hosting the Super Bowl in Kauai than you would of ever getting Coco Palms rebuilt!
Marty s says
March 28, 2019 at 4:59 amNo beach, no golf course, no views. Busy hiway, huge expensive footprint, lots of competition.
It just does not look profitable in today’s market.
I think Elvis has left the building.
don m says
March 27, 2019 at 2:52 pmWe stayed there in 1975 and have been by to visit several years ago. It is a shame that they are having BIG problems with redevelopment!!!!
Sue B says
March 28, 2019 at 9:06 pmNo amount of rehab would ever bring it back to its original state nor would it be the same without Mrs. Guslander at the helm.
Sue B says
April 18, 2019 at 7:00 amI stayed there back in late 70s when Mrs. Guslander was alive and managing the property. She was the main reason Coco Palms was Coco Palms. She showed her guests the reverence the property and Hawaiian people deserved. The calling to the people that had passed by turning off all electricity and lighting the torches and the Hawaiian men paddled their canoes down the streams singing traditional music made me feel like I was truly a part of a tradition. Bless her soul. She was a great lady.
Jan L says
April 30, 2019 at 8:28 amThe Coco Palms was beautiful. I stayed there twice. I would love to see it rebuilt. Maybe more than one developer would take it on and rebuild it. I know people would stay there. The restaurant was open air. The birds would come in and sit on the chairs. The water where Elvis made his movie went right next to the restaurant. At night it was all lite up and Hawaiian dancers would float down past the restaurant and there was a stage where they had the Hawaiian show. The property was huge. You walked way back on the property where there was a little zoo with monkeys and different animals. It was great there. I wish it could be rebuilt to what it was. I would go back. My second husband had never been. When we decided to go we learned it had been distroyed. Love to see it rebuilt.❤
Pam S says
March 27, 2019 at 1:49 pmThis eyesore should have been torn down many years ago. It’s a disgrace to the beautiful island of Kauai. What it used to be is so far in the past that it doesn’t matter anymore.
John K says
March 27, 2019 at 11:38 amMaybe Mr. Zuckerberg will show his neighbors some love. He could finance the clean up, a gorgeous Hawaiian park, a small amphitheater and some retail of shops and restaurants.
MisterM says
March 27, 2019 at 11:00 amCoco Palms was a dump before Iniki did us a favor. The owners were milking its reputation to clueless punters. Hope it gets bulldozed into oblivion sooner than later. The County negigligently failed to condem the place decades ago and it’s time it finally done..
Paki says
March 30, 2019 at 9:25 amMISTERM, We don’t all have your negative view of Coco Palms before Iniki hit. Some of us liked it back then and still miss it.
Stan F says
March 27, 2019 at 9:34 amOne thing that comes quickly to mind about the Coco Palms resort is the fact that while there was some money on the table to start initial work, the money to make the project come to life was always on the side, waiting to see if the community would come around in support. That never seemed to happen in a way by which investors could be comfortable with. From the Native Hawaiian protests to the counties sitting on permits, I think the investors that could have invested decided that the risk was just too much for what seems like a marginally successful plan. That money is going to places where there is more guaranteed profit and a lot less headache in making the project come to life. Sorry to say doing business in Hawaii at this level is not as easy as it was in the days the Coco Palms was first built. And I think that anyone who is trying to use the goodwill of the past to show value of the place today needs to know that all that goodwill is not enough to overcome what now seems to be institutional opposition to re-development of the property.
Dennis says
March 27, 2019 at 9:16 amThis does not make me sad. Kauai needs to stop building so much. Although iconic, I don’t believe that Coco Palms needs to be rebuilt. Let it die and move on.
Jan L says
April 30, 2019 at 8:35 amI disagree. Yes they should stop building so much, but they should rebuild the Coco Palms. It was wonderful and it could be again.