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$30 Million Transformation, Iconic Kona Hotel to Reopen as Hampton Inn Kailua-Kona Bay Hotel in 2025

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Published
02/15/2025 by

The Kailua-Kona tourist district will soon be home to the Hampton Inn Kailua-Kona Bay, opening Summer 2025. Rooted in a strong commitment to service and quality, Hampton by Hilton is a global powerhouse brand known for innovation, best-in-class service, and unparalleled guest loyalty.

Sandy Shapery, through his entity 12th & A Hotel Partners, will invest approximately $30 million into the hotel's renovation, with financing arranged by 12th & A's partner, Summit Capital. Located in the center of the eight-block oceanfront tourist area in Kailua-Kona, the renovated hotel is anticipated to open its doors under the management of PEG Hospitality Group.

Shapery, a historic preservationist, wanted to keep the iconic property authentic, accessible, and affordable while also retaining the 1960s Hawai'i vibe, which led him to partner with Hampton by Hilton to bring the vision to life and Trader Vic's to operate the bar/restaurant.

"We are honored to bring Hampton Inn Kailua-Kona Bay to Kailua-Kona, a destination known for its rich culture and natural beauty," said Shapery. "The restoration of the property reflects our commitment to providing high-quality accommodations while honoring the traditions and spirit of the Hawaiian community. It's important to me to keep as much of the original structure from a design standpoint."

Although the floor plan remains the same for the four-story semi-circle structure, the walls, furniture, and fixtures are being replaced. The wooden boardwalk will be replaced with a simulated composite wood material to extend the life of the walkway while maintaining the original character, and a second elevator will be constructed to comply with Hilton's standards. In addition, 340 environmentally friendly tiki torches will span across the property walkways, with the standard kerosene wicks replaced with LED flicker lights.

With 123 rooms, the property appeals to both business and leisure guests looking for warm surroundings, a friendly service culture, high quality, thoughtfully designed accommodations and amenities, such as modern, spacious rooms, a fitness center, and free hot breakfast. Guests will enjoy additional amenities like a sparkling pool, a large outdoor common area complete with a firepit and bar, as well as a pavilion area with local entertainment and cultural activities. The Island Bar and Grill by Trader Vic's - the creator of the Mai Tai back in 1944 - will serve local Island/Polynesian fare and of course, Mai Tais.

"Through our longstanding relationships in hospitality development and structured finance, we were able to bring together the key partnerships and funding solutions that made this unique Hampton Inn possible in downtown Kailua-Kona," said John Stueber of Summit Capital. "Working alongside Sandy on this project since 2020, we've helped create something that both honors this historic location and elevates the guest experience. We're grateful to Hilton and all of our stakeholders for their trust in bringing this vision to life."

To honor the land and seek blessings for the property, Shapery hosted a traditional Hawaiian blessing ceremony on Tuesday, Dec. 10, 2024. Kahu Danny and Anna Akaka led the construction workers in a sacred gathering that honors tradition in the spirit of aloha.

"With humble regards, we are so blessed to have people who are friends of Hawaii like this," said Mayor Kimo Alameda who was just sworn into office the preceding week. "The investment in the local community enhances the visitor experience by providing more accessible, quality accommodations. We are grateful to Sandy and his team for their dedication to preserving the essence of our community while fostering economic growth. This sentiment was echoed by other community leaders who attended the ceremony and have been strong supporters of the project."

Honolulu Builders serves as the General Contractor, while Level 3 lends its expertise as the interior designer. Architectural design is a joint effort between AM Turner Architects and Koa Design Group, combining innovation and creativity to bring the vision to life.

Hampton Inn Kailua-Kona Bay is located at 75-5747 Ali'i Drive in Kona. To learn more about Shapery Enterprises visit www.shaperyenterprises.com; for Summit Capital visit www.summit-capital.net; and for PEG Companies visit https://peghospitalitygroup.com/.

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