A 25-acre plot on Kauai’s south coast, originally designated for a luxury hotel called The Ohia at Kukuiula, is now vacant after the project’s developer, Kupono Resorts LLC, filed for bankruptcy. The planned $227 million resort was supposed to help address the island’s hotel shortage, offering 85 rooms and additional residences, but rising construction costs and economic challenges stalled progress. As of October 2025, the project has shifted to Chapter 7 liquidation, with an auction set for April 13.
Despite the location’s advantages, including proximity to shopping and established resort areas, the project failed due to high construction expenses, a tight labor market, and regulatory hurdles. The overall tourism supply in Kauai has not expanded significantly in recent years, and the number of available vacation rentals is declining.
Currently, the movement of land in Kauai is focusing on housing rather than tourism, with recent acquisitions aimed at providing residential options for residents. This trend has been welcomed by many locals prioritizing housing needs over hotel developments, which further constricts future hotel inventory.
Even if a new buyer revives the hotel concept after the auction, the timeline for development would be lengthy, leaving the future of new tourist accommodations uncertain. This ongoing situation highlights the challenges of expanding Kauai’s hotel capacity and reflects the growing difficulty of securing reservations as supply remains stagnant.
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