We’ve covered a few big land deals recently, but this one hit different. Kamehameha Schools (KS) has sold the land beneath the Royal Hawaiian Hotel, arguably the most iconic piece of real estate in Waikīki. The 10.3 acres of oceanfront land was sold to Japan-based Daisho Co. for $510 million. The hotel’s still operated by Kyo-ya under a long-term lease (locked in until 2076), but the underlying ʻāina has changed hands. Compare this to the recent KS sale of Hualālai land of $400 million for 31 acres.
KS says the deal aligns with their 2030 strategic plan and helps them better manage their portfolio. I get it: a pile of cash can fund scholarships, infrastructure, be invested in higher-yielding vehicles, and cover liabilities. But still, this one surprised me. Land is permanent. Cash is transitory. The Royal Hawaiian is more than a hotel; it sits on land once home to the aliʻi with deep history.
It’s also worth noting that the sale comes on the heels of some heavy financial and legal headwinds for KS, including an $872 million settlement tied to the 2023 Maui wildfires and a new federal lawsuit challenging its admissions policy.
According to KS, Daisho understands the significance of the land and intends to honor it, but let’s be honest, intentions are nice, but ownership is power. Daisho is a real estate investment and development firm, headquartered in Fukuoka with properties across the Asia-Pacific, but this is its first commercial acquisition in Hawaiʻi.
I’m not usually shocked. This one shocked me.
