Coco Palms Just Landed $431 Million. Will It Finally Reopen in 2028?

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If you’ve been to Kauai in the last three decades, you’ve probably driven past the ruins of Coco Palms Resort on Kūhiō Highway and wondered what on earth is going on with that place.

The answer, for most of that time, has been some version of “not much.”

This week, that answer got more complicated.

The developer just closed on $431 million in financing, the largest single funding commitment the property has ever seen. That is not a small number, and it is not another rendering.

What actually changed this week?

On June 22, 2026, commercial real estate lender X-Caliber announced it had finalized $431 million in financing for the Coco Palms redevelopment.

According to Kauai Now’s reporting, the package breaks down into $185.6 million in conventional senior-secured financing and $245.35 million in Commercial Property Assessed Clean Energy financing, together covering about 80% of the total project cost.

The plan is for a 351-room hotel branded Coco Palms, A Kimpton Resort, operated under IHG and managed by Highgate.

That part hasn’t changed since it was first announced back in 2024.

What has changed is that the money behind it is no longer theoretical.

Jon Day, chief financial officer of developer Reef Capital Partners, called it “the pivotal final step” in getting construction moving, according to reporting from Honolulu Civil Beat.

Why $431 million is not just another rendering?

Coco Palms has been “reopening soon” since 2017.

Every few years brought a new developer, a new brand partner, and a new optimistic date, and every time, the date quietly slipped.

Here’s the thing that makes this round different.

The earlier announcements leaned on plans, partnerships, and hope. This one leans on a closed loan with named lenders and specific dollar amounts.

That distinction matters. A rendering costs nothing to produce.

Photo Credit: Reef Capital Partners

A construction loan requires banks to actually believe the numbers work, which is a different kind of confidence than a press release.

Skepticism is still earned here, and plenty of Kauai residents aren’t ready to celebrate.

Former state senator Gary Hooser told Civil Beat he remains “skeptical at best,” pointing out that “it’s been one developer after another making promises with almost no results.”

That reaction is fair, given the history.

What you’ll actually see if you drive by Wailua Bay right now

This is the part where expectation and reality split. If you picture “$431 million in financing” and imagine cranes and framing already rising along the highway, that’s not what’s there yet.

The old concrete shells that made the site an eyesore for decades are gone, which is real progress.

Beyond that, the site is still mostly cleared ground, with utility work and underground parking garage restoration expected to start once financing wraps into active construction.

Major construction is projected to begin in early 2027, according to Civil Beat’s reporting.

Day pushed back on the idea that nothing has happened, noting that demolishing and recycling three large concrete buildings didn’t happen on its own.

Does this change anything about visiting Kauai?

No, and this is the most important part for anyone with a Kauai trip on the calendar. There is nothing to book at Coco Palms, nothing to avoid, and no new detour required around Wailua because of this announcement.

The property is still years away from taking guests, with 2028 as the current target.

If you’re island hopping and wondering whether this affects your Kauai travel plans, it doesn’t, at least not yet.

What this story is actually useful for is context. If you’re the kind of traveler who’s been curious about Coco Palms’ saga for years, or you remember the property from its Elvis Presley “Blue Hawaii” days, this is the update worth knowing.

What would actually prove this is real

The next milestone isn’t another financing announcement or brand reveal.

It’s whether workers and equipment actually show up on site in early 2027 the way the developer says they will.

Coco Palms sits on land tied to Hawaiian royalty, including Kauai’s last queen, Deborah Kapule, and community group I Ola Wailuanui has spent years pushing for a cultural and educational use of the site instead of another hotel.

That tension around the project’s cultural significance isn’t resolved just because a loan closed.

For now, the honest summary is this.

The money is no longer the missing piece it used to be. Whether that turns into an actual hotel by 2028 is still an open question, and Kauai has earned the right to wait and see.

If you’re planning a Kauai trip in the meantime, there’s plenty to see on the island that doesn’t come with a 33-year asterisk.

Check out our guide to the best beaches in Kauai, or if you’re deciding how long to stay, our 7-day Kauai itinerary breaks down how to spend a full week on the island.

And if you’re still weighing hotel versus vacation rental for your stay, our breakdown on choosing a hotel or Airbnb in Hawaii covers current Kauai rates.

For first-timers still building out the basics, our Kauai travel tips guide covers what to know before you go.

FAQs

Is Coco Palms Resort open on Kauai right now?

No. Coco Palms has been closed since Hurricane Iniki damaged the property in September 1992. It remains closed during ongoing redevelopment.

How much money did Coco Palms just secure, and who provided it?

Developer Reef Capital Partners secured $431 million in financing from commercial lender X-Caliber, made up of $185.6 million in conventional financing and $245.35 million in Commercial Property Assessed Clean Energy financing.

When will Coco Palms actually reopen?

The current target is 2028. Major construction is expected to begin in early 2027, according to developer statements reported by Civil Beat.

What brand will Coco Palms be when it reopens?

The property is planned to reopen as Coco Palms, A Kimpton Resort, operated under IHG and managed by Highgate, with 351 rooms.

Does this financing news change anything about visiting Kauai now?

No. There is nothing to book or avoid at Coco Palms right now. The site is still an active demolition and pre-construction site, not a hotel.

Why has Coco Palms taken so long to rebuild?

The property has cycled through multiple developers, permit disputes, and community opposition since Hurricane Iniki closed it in 1992. This is the first time a financing package of this size has actually closed, which is why it’s being treated as a more credible signal than past announcements.

Sources

Kauai Now, “Developer of Coco Palms Resort property secures $431 million in financing for property in ruins since 1992 Hurricane Iniki“

Honolulu Civil Beat, “Can A $400+ Million Loan Push The Stagnant Coco Palms Project Ahead?“

X-Caliber Capital Holdings, “X-Caliber Delivers $431MM in Financing for Coco Palms, an Iconic and Historic Resort on Kauai,” BusinessWire press release.