A lot has changed in Waikīkī over the last 100 years as it's grown to become the center of Hawaiʻi tourism. But what hasn't changed is the ownership of land under many Waikīkī hotels.
Last month, investors bought most of the land that's underneath the Hyatt Regency Waikiki Beach Resort and Spa for $215 million. While the price is noteworthy, what's even more remarkable is how long the sellers had owned the ground lease.
The sellers were the descendants of James Steiner. He bought the land that's under the Hyatt sometime around 1900. But it's rare to see those historically owned lands changing hands. Families receive income from the hotels and other buildings on those lands and may not be looking for a big payout.
And then there are the Hawaiʻi institutions like Kamehameha Schools, Liliʻuokalani Trust and the Queen Emma Land Company that own large parts of Waikīkī. That includes the land under hotels like The Royal Hawaiian, the Waikiki Beach Marriott and the Hilton Garden Inn.
Since Waikīkī is a global tourism destination, these landowners are likely to be approached from time to time by investors looking to buy.
Ray Tsuchiyama is a real estate advisor at Cushman & Wakefield ChaneyBrooks. He said owning a trophy hotel is a goal for many of those investors.
Tsuchiyama said that if they can own the land, too, then that adds greatly to the value.
