If you’ve been to Hawaii recently, you might’ve noticed something surprising. Despite their rising popularity, the islands are not seeing many new hotel constructions. So what gives? Today, we’ll dive into why you’re not seeing more new hotels In Hawaii. The market demonstrates strong demand through high occupancy rates during peak seasons and stable room rates. Building new lodging in Hawaii presents distinct challenges. They include rapidly increasing construction expenses alongside restricted land availability and stringent zoning regulations.
The Big Picture: Why Developers Aren’t Building New Hotels
– The state of Hawaii faces a scarcity of buildable land. As a result, authorities protect most available areas for their cultural importance, or developers avoid them due to prohibitive costs.
– Construction expenses in Hawaii rank among the highest nationwide. Construction materials require shipping from other places. Additionally, labor costs remain high, while the permitting process also continues to be lengthy.
– Developers steer clear of most available areas because high costs and cultural protections make building difficult. Combine that height limitations and strict environmental rules present significant barriers to new hotel approvals.
– Local communities push back against new development. “This is largely due to concerns about overtourism and cultural disrespect, which in turn often lead to project delays or cancellations before they even begin.
Risk vs. Reward For New Hotels in Hawaii
Rebuilding from scratch often isn’t worth it. Hotels originally constructed in the 1970s and 1980s usually select renovations. This approach provides quicker results at a lower cost while avoiding controversies. Still, to this day, most hotels offer the same basic boxed rooms.. Most contain the same square footage even after the renovations.
Here are some recent standouts:
Kauai
– Developers have extensively converted the former Princeville Resort into a luxury wellness resort. It emphasizes sustainable design and native landscaping elements.
– The Royal Sonesta underwent renovations a couple of years ago—owners gave the property a facelift and remodeled all the rooms.
Oahu
– Hawaii Hospitality Group renovated the Ambassador Hotel Waikiki and the Romer House Waikiki, an adults-only, both of which offer affordability.
– Hilton Hawaiian Village updated its renowned Rainbow Tower by preserving its mid-century design yet introducing modernized rooms and facilities.
– The Renaissance Honolulu Hotel & Spa is the latest addition near Ala Moana which delivers a modern upscale accommodation experience for both business and leisure visitors.
Big Island
– Kona Village, A Rosewood Resort stands today as one of Hawaii’s most stunning beachfront properties. Following its reconstruction after a natural disaster destroyed the original structure.
– Hapuna Beach Resort is currently in the midst of major renovations. They will match its design and standards with its sister property Mauna Kea Beach Hotel.
– After pandemic restrictions eased, Mauna Lani, Auberge Resorts Collection transformed its focus towards luxury combined with cultural immersion experiences.
Maui
– The Fairmont Kea Lani underwent extensive changes to rooms , dining areas and public spaces. The result is one of the island’s most luxurious destinations that’s perfect for couples and families.
The Andaz Maui stands out as a newly constructed building. It replaced what used to be the Renaissance Hotel following extended demolition and redevelopment efforts. It’s The property is now getting its second refresh since developers first built it.
Why New Hotels in Hawaii Matters
TThis explains why you’re seeing your preferred hotel under renovation or charging higher rates. Despite modernization efforts in hotels, limited room supply maintains high rates and restricted availability in peak travel periods.
Planning your travel in advance becomes essential due to current hotel industry trends. Travelers must keep in mind the possibility of disturbances from renovation. Alos, work as well as reduced amenities during their hotel stay. (Pro tip: Before booking your stay check with your travel advisor about any property updates or renovations.
New Projects on the Horizon
Despite Hawaii’s lack of a widespread hotel construction boom, new Hawaii Hotels have begun. These properties are in the planning stages or have been completed:
- Atlantis Resort – Oahu
Recently announced after almost 20 years of speculations and attempts. This $216 million resort project on Oahu’s west side that covers 26 acres has begun its development after a long wait. The resort aims to deliver a bold family-oriented experience with extensive pools and water features along with interactive activities.
- New Hotel in Chinatown (Honolulu)
The soon-to-open urban hotel on Nimitz Highway will include 240 guest rooms spread throughout over 44,000 square feet of space. The project supports a bigger initiative to “revitalize downtown Honolulu” which integrates hospitality services with art and local businesses.
- Hawaii’s First Capsule Hotel”
This new project is located on the 14th floor of the Hawaii Business Center. It recently opened and offers 103 affordable sleeping pods. The design targets budget travelers, solo adventurers, and Japanese tourists who understand capsule accommodations.
The construction of new Hawaii hotels won’t transform the area immediately. It does demonstratre that developers maintain their ability to inventively address increasing demand.