Hotel Molokai | 1300 Kamehameha V Hwy
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Hotel Molokai 1300 Kamehameha V Hwy
48 Room Hotel Kaunakakai, HI 96748 $4,900,000 ($102,083/Room)
Investment Highlights
- Molokai Island’s ONLY hotel provides a unique opportunity to have a virtual monopoly on the island’s hotel business
- Upside potential to increase occupancy closer to peak of 69.4% in 2019 through minor improvements to the property
- Well-maintained with professional, proactive management
- Strong operating performance with a 2023 total occupancy of 58.8%, ADR of $213.25, and RevPAR of $103.41
- Amenities include an outdoor pool with ocean views, bar, full lobby with multiple seating areas and guest computer, and free WIFI
- Majority ownership allows for control over the condominium association
Executive Summary
EXCLUSIVE SALE OPPORTUNITY | Standard Commercial has been selected to serve as the exclusive advisor for the sale of the
majority interest in the fee simple interest in the oceanfront Hotel Molokai, the island’s only hotel. Nestled on Kamiloloa Beach
and alongside Hawaii’s only barrier reef, Hotel Moloka’i offers a serene escape on the island of Molokai. The property consists of a
Polynesian-style village with tropical bungalows, ocean-front swimming pool and onsite restaurant. Moloka’i, known as the birthplace
of the Hula, features outdoor adventures from lush hiking trails to majestic waterfalls. Hotel Moloka’i is your gateway to a genuine
island experience, where guests have enjoyed a warm and welcoming atmosphere for over 50 years.
PASSIVE OWNERSHIP STRUCTURE | The property is part of a condominium association which manages the common areas and
exterior structures, making it a passive ownership structure for an investor. The offering provides a buyer with 49 hotel units, as well
as 2 commercial units of the total 59 units in the project, providing an 86.44% majority needed to easily make a decision with the
association.
STABILIZED 5.4% CAP RATE WITH UPSIDE POTENTIAL | Offered at an in-place 5.4% cap rate on annualized 2024 net operating
income, this property provides a buyer with immediate cash flow. With current occupancy well below its peak of 69% in 2019, there
is significant potential for a new owner to increase occupancy back to historical levels. Basic room upgrades, a recent significant
increase in revenue, and local laws prohibiting illegal short-term rentals—thereby reducing competitive supply—create substantial
value-add opportunities.
TURNKEY OPERATION | The current management company, Life House Hotels, specializes in boutique hotel management and
has an excellent marketing and management platform for the property. Since taking over in September of 2023, Life House has
implemented dynamic pricing and aggressive marketing, leading to a significant increase in revenue. The hotel’s general manager has
been with the property for over 18 years and oversees all staff, providing a turnkey operation for a buyer.
MANAGER’S HOME ALSO AVAILABLE FOR PURCHASE | The renovated manager’s home is an optional purchase with the property.
Located directly across Kamehameha V Highway from the hotel, the renovated home is being offered at $580,000, providing an ideal
living option for the hotel’s manager.
$1.134 MILLION CAPITAL RESERVE | The AOAO has a reserve of approximately $1.134 million (projected as of 1/1/25) designated for
future capital projects in the common areas. This substantial reserve provides a buyer with the opportunity to access significant
funds to upgrade and enhance the property’s common areas, further increasing its marketability and potential appeal to guests.
majority interest in the fee simple interest in the oceanfront Hotel Molokai, the island’s only hotel. Nestled on Kamiloloa Beach
and alongside Hawaii’s only barrier reef, Hotel Moloka’i offers a serene escape on the island of Molokai. The property consists of a
Polynesian-style village with tropical bungalows, ocean-front swimming pool and onsite restaurant. Moloka’i, known as the birthplace
of the Hula, features outdoor adventures from lush hiking trails to majestic waterfalls. Hotel Moloka’i is your gateway to a genuine
island experience, where guests have enjoyed a warm and welcoming atmosphere for over 50 years.
PASSIVE OWNERSHIP STRUCTURE | The property is part of a condominium association which manages the common areas and
exterior structures, making it a passive ownership structure for an investor. The offering provides a buyer with 49 hotel units, as well
as 2 commercial units of the total 59 units in the project, providing an 86.44% majority needed to easily make a decision with the
association.
STABILIZED 5.4% CAP RATE WITH UPSIDE POTENTIAL | Offered at an in-place 5.4% cap rate on annualized 2024 net operating
income, this property provides a buyer with immediate cash flow. With current occupancy well below its peak of 69% in 2019, there
is significant potential for a new owner to increase occupancy back to historical levels. Basic room upgrades, a recent significant
increase in revenue, and local laws prohibiting illegal short-term rentals—thereby reducing competitive supply—create substantial
value-add opportunities.
TURNKEY OPERATION | The current management company, Life House Hotels, specializes in boutique hotel management and
has an excellent marketing and management platform for the property. Since taking over in September of 2023, Life House has
implemented dynamic pricing and aggressive marketing, leading to a significant increase in revenue. The hotel’s general manager has
been with the property for over 18 years and oversees all staff, providing a turnkey operation for a buyer.
MANAGER’S HOME ALSO AVAILABLE FOR PURCHASE | The renovated manager’s home is an optional purchase with the property.
Located directly across Kamehameha V Highway from the hotel, the renovated home is being offered at $580,000, providing an ideal
living option for the hotel’s manager.
$1.134 MILLION CAPITAL RESERVE | The AOAO has a reserve of approximately $1.134 million (projected as of 1/1/25) designated for
future capital projects in the common areas. This substantial reserve provides a buyer with the opportunity to access significant
funds to upgrade and enhance the property’s common areas, further increasing its marketability and potential appeal to guests.
Property Facts In Escrow
| Price | $4,900,000 | Building Size | 35,382 SF |
| Price Per Room | $102,083 | No. Rooms | 48 |
| Sale Type | Investment | No. Stories | 3 |
| Property Type | Hospitality | Year Built/Renovated | 1968/2008 |
| Property Subtype | Hotel | Corridor | Exterior |
| Building Class | B | Opportunity Zone |
Yes
|
| Lot Size | 2.45 AC |
| Price | $4,900,000 |
| Price Per Room | $102,083 |
| Sale Type | Investment |
| Property Type | Hospitality |
| Property Subtype | Hotel |
| Building Class | B |
| Lot Size | 2.45 AC |
| Building Size | 35,382 SF |
| No. Rooms | 48 |
| No. Stories | 3 |
| Year Built/Renovated | 1968/2008 |
| Corridor | Exterior |
| Opportunity Zone |
Yes |
Amenities
- Balcony
- Pool
- Restaurant
- On-Site Retail
- High Speed Internet Access
- Patio
- Beach (direct access)
- Smoke-Free
- Fully-Equipped Kitchen
Room Mix Information
| Description | No. Rooms | Daily Rate | SF |
|---|---|---|---|
| Suite | 2 | $588.00 | - |
| Guest Room | 46 | $354.00 | - |
PROPERTY TAXES
| Parcel Number | 2-5-4-002-001-0000 | Improvements Assessment | $0 |
| Land Assessment | $897,300 | Total Assessment | $897,300 |
PROPERTY TAXES
Parcel Number
2-5-4-002-001-0000
Land Assessment
$897,300
Improvements Assessment
$0
Total Assessment
$897,300
zoning
| Zoning Code | H-1 (Hotel District) |
| H-1 (Hotel District) |
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Hotel Molokai | 1300 Kamehameha V Hwy
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