The on-again and off-again project to revive Kauai’s historic, but the languishing icon is nearing a critical juncture. But is it too late? Some say the Kauai Coco Palms Resort may not be salvageable anymore.
Refresher
The storied Coco Palms Hotel was made famous by Blue Hawaii starring Elvis Presley and other movies of the 50s. But, decades later, in 1992, Hurricane Iniki made direct landfall on Kauai and severely damaged the resort. It’s been closed ever since and has been through numerous failed attempts to reopen it. This latest one, however, could very well be the last.
Current Status
The last time we heard about the Coco Palms Resort was over a year ago when the developer defaulted on its loan. Well, today, that issues continues to haunt the project. You see, last year, the project’s lender, Utah-based Private Capital Group, tried to foreclose on the property. Naturally, that triggered a lawsuit on Kauai, which is due to be decided upon this week.
The issue? It appears that Private Capital Group isn’t actually a lender at all – they’re a mortgage servicing company. And, as such, they don’t have the legal authority to foreclose on the property, claims the lawsuit. If the court sides with the servicing company, an auction for the property could occur in about six months. If not, the decision will likely be appealed, which could add another three years of litigation.
But what do these timelines have to do with the ability to revive the iconic resort or not? Decay.
Coco Palms May Not Be Salvageable
Ron Agor, who has been an architect on at least four of the Coco Palms revitalization projects, says that the buildings are in bad shape. Specifically, the concrete frames of the building are deteriorating quickly, exposing rusting rebar on critical support columns. And, as you can imagine, this creates structural integrity issues.
According to Agor, the buildings are still salvageable – for now. But, they may not be for long. In fact, Agor thinks even six months may be too long to wait.
Management Company Still On-Board
The Honolulu Civil Beat, which published this latest update, says that there is still some hope. And that hope is based on the fact that the resort’s future management company is still on-board.
As you’ll recall, the revitalized resort is under contract to become a Hyatt Unbound Collection property. And, for its part, Hyatt says it still considers this deal to be valid.
That’s very optimistic, in my opinion, especially since the current developer can’t afford to pay its bills. Yes, Agor has hope that yet another buyer or investor will be found soon, but I’m not so sure.
Kauai Coco Palms Resort May Not Be Salvageable, Final Thoughts
Honestly, I’m beginning to think that, indeed, this project will never be successful. That the Coco Palms will eventually come down, and that the site will end up being repurposed for something other than a hotel. After all, would younger generations even be interested in staying here? Most have probably never even heard of the movie Blue Hawaii and probably only vaguely know who Elvis is.
The Coco Palms project will never happen. When I was in Kauai last December, I asked about that property. The County of Kauai wants a smaller development for environmental reasons and the owner will have to pay the county to widen the road from one lane in each direction to two lanes in each direction. The only way to widen the road is to cut into the property. I can’t see anybody putting in that much money to get that much less real estate.
Nostalgia is a powerful drug. But, given the current environment, you’re likely right.
Interesting, I’m from Memphis. We’ll never forget Elvis.
Sad, but perhaps inevitable. Lots of nostalgia for the place (my parents honeymooned here, for instance) but that diminishes with the passing of time considering that it hasn’t received guests in nearly 30 years. The novelty of staying in the Blue Hawaii hotel fades with successive generations, and, in view of some of the spectacular resorts on the island, it’s not even a particularly desirable location given that the Kuhio Highway runs directly in front of it, separating the hotel from the beach. Rates in Wailua aren’t terrifically high to begin with and so I doubt the Coco Palms would drive a significant premium.
At this point, perhaps it’s best to move on to some other reuse of the property that better serves the current market (rather than a high end hotel) and acknowledges history symbolically, than trying to recreate it.
This is likely the correct take. While the renderings look great and I’d be interested to see how the hotel works out as a Hyatt, I don’t see a lot of people from my generation staying here unless they’re trying to use points and can’t get into the Grand. Heck, with its currently low rates, probably better off staying at the nearby Sheraton.
Gotta give you credit, island miler! You accurately predicted that this project would never work out quite a while ago.
I’d also agree that even assuming it gets done, it wouldn’t be my first choice on the Garden Isle. Not enamored with having to walk across the street for a less than ideal beach. But, on the other hand, it is always nice to have more points redemption options.
Hah! Thanks for reading and remembering that, Wes! And, yeah, more choices would’ve been nice, especially in light of the loss of the St Regis not too long ago. But, given that they’re planning on reusing the shell of the original building, I wonder how good the rooms could be anyway? They never did release renderings of that, and I’m inclined to believe that, as is the case with any old hotel, renovated or otherwise, the rooms would be quite small by modern standards.
Yeah, I’d agree on room size too. I alive in FL and that’s one of the things about classic Art Deco hotels in South Beach. Priced for today, with room sizes from the 50’s.