The final phase of demolition of the former Uncle Billy’s Hilo Bay Hotel is underway, with completion expected in January 2026.
The state Department of Land and Natural Resources says that the work represents a step toward the revitalization of the Waiākea Peninsula.
The once-celebrated hotel and resort, built in the 1960s, ceased operations in 2017. Hawai‘i County condemned the structure due to public safety and health concerns.
The abandoned structure became a host for squatters and the site of numerous arson fires, further deteriorating the property that also sits between two other popular Hilo hotels.
Demolition began in 2024, following an emergency proclamation issued by Gov. Josh Green the year prior. The first phase included the removal of all aboveground structures and was completed in December 2024.
The current and final demolition phase focuses on preparing the site for redevelopment. This includes removing soil impacted by pesticides, removing underground utilities, a full surface grading of the site, and placing fresh topsoil and grass.
Isemoto Contracting Company is overseeing the $4.7 million project.
The Hawaiʻi Community Development Authority will determine how the site might be used in the future.