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.
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
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Pete A. says
It should be returned to the native Hawaiians, and they should pay all back taxes.
Sandy B says
The property should be returned to the Native Hawaiians.
Bob B. says
If you can watch the program “Mysteries at the Museum” Season 9 Episode 10 (the most recent) the last segment is about the Coco Palms, VERY interesting story.
Recounts how it started, with 24 rooms and 5 employees, the owner hired a lady from the East Coast, with no knowledge of Hawaiian Culture, to run it. She developed it into what it became.
Told about there was a sugarcane train track between the resort and the highway which would go through blowing it’s horn several times a day even at night. The guests complained so the lady took a chair and set it in the middle of the railroad and waited for the train, she refused to move until the Sugarcane train owner agreed to not blow the horn at 3 AM! Great program with, photos and video.
Cindy W says
Thirty years?? Thirty years and nothing can be decided?! What an example of government/state inefficiency in it’s prime. Can’t believe 30 years.
Beverly G. says
Ever since I saw Elvis in “Blue Hawaii” as a child, I dreamed of visiting this tropical island some day. Well, that day would finally came many years later (in November of 2008) when I visited Oahu and Kauai. My friend and I enjoyed the movie tour, and of course, our guide took us to Coco Palms. Some tourists broke down in tears, recalling their honeymoon there or visiting years ago. Scenes from “Blue Hawaii” flashed into my mind as I walked the destroyed grounds of Coco Palms and stared at the lagoon, where the famous wedding scene took place at the end of film. I was so hopeful that this special place would be restored to its original splendor and was thrilled to see beautiful plans in photos. It seems a miracle would need to happen now.
Roy H says
As we are talking about Kauai we have noticed that the Beach House restaurant wants to expand. Normally I would think it was not such a bad idea, but there is no room for additional parking in the area. People are already parking in places they shouldn’t be parking. The Beach House is a special kind of restaurant. Can’t help but wonder what their plans are and what would happen to the grassy area around the restaurant. There are a good many weddings done there.
Aloha guys.
Beat of Hawaii says
Hi Roy.
What grassy area? Ha.
Aloha.
JPD says
Coco Palms. Sept 11 1992. I would buy it if the county did the demo, paid the insurance and put in a multi use park and maintaned it.maybe in a cutural way generate some income to suppory it’s self. Weddings, concerts, family gatherngs, museum, shelters pavillions, parking parking for food trucks. No permanent retail. Maybe something like Spoutting Horn. Then again I spent all my money on gas and food. Maybe next year. It will be 30 years in Sept.
Debi S says
Aloha – just wondering where you posted your most recent drive-by video? Mahalo
Beat of Hawaii says
Hi Debi.
It is within the post, near the very bottom.
Aloha.
Holly R says
So sad, my favorite Elvis movie was Blue Hawaii, just because of the amazing nature and the resort that I thought that everyone deserves to experience once in their lives. It was the place that I wanted to get married. It would be so nice to have it partially restored for pig roasts, luaus and weddinh venue’s. It could be opened as a park with a large restaurant and event area to pay for itself and employ native Hawaiians to dance, cook, also take care of the native flora… Make it beautiful again.
MJ says
I heard that somewhere… LOL
Brandon G says
Hyatt, swoop in and take it.
Brad B says
My parents first visited Kauai in the 70’s and stayed at the Coco Palms. Their absolute and over-the-top ravings were the still ringing in my ears when we took our first trip to Kauai. Unfortunately, our visit was just after Iniki and we were disappointed in seeing it so damaged.
Our disappointment grew after our subsequent trips and saw the further decay and hearing about the aborted attempts to reopen. Redevelopment seems hopeless.
It has reached a point that I wonder why Kauai doesn’t take it back under eminent domain since the commercial value is nil. Clear the property and use the material to create an artificial reef in an appropriate location then return the land to the survivors of the Kingdom of Hawaii’s overthrow as reparations?
Kauaidoug says
How could any entity even consider buying develop the property until the highway is fixed in front? The cart has been before the horse the whole time, IMO.
Bill says
Stayed there in 1987 and had a great time. Miss that place soooooo much.
Michael N says
Elvis Museum? Affordable housing? Senior living center/health care services?
Susan W says
I have visited Kauai three times and I love the island. Coco Palma was the first place I wanted to visit because of the movie, Blue Hawaii. It is such a beautiful place. I wish someone would either restore it or build a new hotel. It would be a wonderful place for weddings.
Dawn S says
The rules have changed but not all sights are up to speed. I read that they dropped the Health questionnaire for Safe Travels on some of the travel sights for Hawaii. However, some sights state you still need to fill it out 24 hours prior to departure; can someone please clear this up?
Beat of Hawaii says
Hi Dawn.
There is no longer a health questionnaire.
Aloha.
Sandra V says
Reading these sorrowful facts again tonight 1/30/2022.I cry again also. My first Honeymoon 1968. I worked for Island Holidays,Tour operator. Been to Kauai 45 times. I knew Mrs. Guslander personally, had many meals with her at the CocoPalms. She Loved the Island & it’s people as if she were the Heritage blood-Line. I was married again 1989 in the Coco Palms Chapel, December 18th. Wedding Danced on the Lagoon Barge to song “You are the Love of My Life”.
Lisa M says
Honeymooned there in 1969 and met Elvis Presley. I shudder every time we drive by it’s bare bones. Kauai officials have put pen to pad countless times…they know it’s too expensive, no beach access, etc,etc,etc. I live on the north shore. You can’t expect Zuckerberg to buy, demolish, reinvent, or any of a multitude of options. He’s got teams of accountants and lawyers showing him the property’s pitfall’s.
Maybe we should just let the existing owners deal with it.
Mj says
As I wrote on another thread, I think it would be cool if Zuckerberg turned the Coco Palms into a museum of the 1961 Elvis movie “Blue Hawaii.” That way he would only need a facade of most of the place but authentic lagoons and restaurant/bar complete with music and torch lighting rituals. It would attract tourists from around the world, because they saw Blue Hawaii.
Lindy says
As a wanna-be local who has only been able to visit once a year, I’d love to see a park in that location. As it isn’t beachfront, hotel guests would probably try to cross the road. Even if an overpass was put in place, some are scofflaws or simply stupid. Open space would be a boon to all ages, kids to olds. Limiting the number of beds available keeps the status quo from reading the outer limits. Heck, you could even name it Presley Park…
Tim z says
Wake up Kauiai who made Hawaii popular, it was one man and one man only Elvis Pressley, what he did for those islands no man has ever done before or will ever do, so stop asking for someone to buy it and give it back to you, that just sounds so greedy, move on, and let’s get rid of the eyesore what ever it should be …..
Mj says
Tim is quite correct. There is no “magic potion” for living in today’s Kauai that doesn’t include the generation of funds to pay for it. I believe in ancient ownership but not for squatters with no income smoking pakalolo. Asking Mr. Zuckerberg to be philanthropic here is a good idea, but not demanding he do it. Mark might, in fact, be equivalent to royalty of the past who helped Kauai. He should be respected provided he has earned the respect.
Daniel F. says
Stayed at the Coco Palms in 1986. Had made my third and what I anticipated would be my last trip to Oahu (had been laid off after making my reservations) saw a good deal on a flight/hotel/rental car package to Kauai, so I took it. So glad I did. Not fully appreciative of the history of the Coco Palms at the time–it was a wonderful experience–visited the Fern Grotto, had the Slavonic steak at JJ’s, drove around the lovely island. Have been back to Oahu many times; Kauai once.
MJ says
We honeymooned in Kauai at Princeville when they were filming “Uncommon Valor.” Kind of eerie to have Hueys (helicopters) flying so low overhead before we found out it was a movie. Drove by the rice patty scene. Watched the torch lighting ceremony and ate at The Coco Palms and visited the Fern Grotto (remembered big guy starting every sentence on PA with “now over here”). Needless to say, fell in love with Hawaii. Got a great job on Oahu and moved to Hawaii within the month. It was at that job that I had to inspect Coco Palms for replacing the telephone system. It was then we discovered the terrible foundation decay already in 1984, so it was no secret before Iniki.