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Hotel Coral Reef 4-1516 Kuhio Hwy 27 Room Hotel Kapaa, HI 96746 $16,800,000 ($622,222/Room) 5.30% Cap Rate
Investment Highlights
- Turnkey, with stabilized in-place cash flow, offering an annual NOI of $890,743.20 and providing immediate, reliable income.
- Prime Kauai location, situated in one of Hawaii’s most supply-constrained hospitality markets with consistently strong tourism demand.
- Favorable price per key, approximately $622,222 per room, competitive for coastal Hawaii hotel assets.
- Attractive cap rate, offered at a 5.3% capitalization rate, compelling for a boutique hotel in a premier Hawaiian resort market.
- Boutique asset appeal with 27-room property offers operational flexibility, personalized guest experience, and strong pricing power.
- Great opportunity to enhance revenue through rate optimization, brand repositioning, light renovations, and improved marketing strategies.
Executive Summary
Each room features desirable conveniences such as balconies, fully equipped kitchens, high-speed internet, patios, and multi-room suite configurations. Set on 1.09 acres with 30,041 square feet of improvements, the property is surrounded by popular restaurants, retail, bus line access, and top attractions, including Ho’olalaea Waterfall, Kela’s Glass Gallery, Nawiliwili Harbor, and Nawiliwili Bay. This Kapaa hospitality asset offers investors immediate cash flow with long-term upside through revenue optimization, brand repositioning, and value-add capital improvements, ideal for private investors, family offices, or hospitality funds seeking exposure to Hawaii’s resilient lodging market.
Just 29 minutes from Lihue Airport and located in an area with an average household income of $108,000, Hotel Coral Reef benefits from strong year-round tourism, with Kauai welcoming 1.37 million visitors in 2024, making this a premier investment opportunity in Hawaii’s thriving hospitality sector.
Sale Flyer
Property Facts
| Price | $16,800,000 | Lot Size | 1.09 AC |
| Price Per Room | $622,222 | Building Size | 35,376 SF |
| Sale Type | Investment | No. Rooms | 27 |
| Cap Rate | 5.30% | No. Stories | 3 |
| Property Type | Hospitality | Year Built/Renovated | 1953/2019 |
| Property Subtype | Hotel | Parking Ratio | 0.93/1,000 SF |
| Building Class | C | Corridor | Exterior |
| Zoning | CG | ||
| Price | $16,800,000 |
| Price Per Room | $622,222 |
| Sale Type | Investment |
| Cap Rate | 5.30% |
| Property Type | Hospitality |
| Property Subtype | Hotel |
| Building Class | C |
| Lot Size | 1.09 AC |
| Building Size | 35,376 SF |
| No. Rooms | 27 |
| No. Stories | 3 |
| Year Built/Renovated | 1953/2019 |
| Parking Ratio | 0.93/1,000 SF |
| Corridor | Exterior |
| Zoning | CG |
Amenities
- Balcony
- Pool
- Restaurant
- High Speed Internet Access
- Patio
- Public Access Wifi
- Smoke-Free
- Fully-Equipped Kitchen
- Multi-Room Suites
Room Mix Information
| Description | No. Rooms | Daily Rate | SF |
|---|---|---|---|
| Suite | 5 | $344.00 | - |
| Guest Room | 22 | $284.00 | - |
About Hawaii/Kauai Islands
The Hawaii hotel market is a mature, resort-oriented destination driven primarily by long-haul leisure demand, destination weddings, and group vacation travel. Demand is supported by strong airlift, globally recognized natural attractions, and a diversified island mix that allows visitors to tailor experiences across resort-heavy, urban, and low-density environments. Within this framework, Kauai functions as a supply-constrained, experience-driven island, while the Big Island, anchored by Kona, serves as a high-volume leisure and resort gateway.
Air access is the primary demand driver across the islands. Ellison Onizuka Kona International Airport at Keāhole (KOA) is one of the state’s most important leisure gateways, providing extensive nonstop service to West Coast markets and select mainland hubs. KOA supports the Big Island’s west-side resort concentration, including Kailua-Kona, Waikoloa, and Kohala Coast, and plays a critical role in multi-island itineraries. Lihue Airport (LIH) serves as Kauai’s sole commercial gateway, offering nonstop service to major West Coast markets and strong inter-island connectivity via Honolulu.
Leisure travel dominates both markets but differs in profile. The Big Island benefits from higher visitation volumes and a broader mix of resorts, outdoor adventure, and cultural attractions, including Hawaiʻi Volcanoes National Park, Mauna Kea, and world-class golf. Kauai attracts a more upscale, lower-density visitor seeking nature-based experiences such as the Na Pali Coast, Waimea Canyon, and Poipu Beach, supporting strong rate integrity and high occupancy despite limited supply growth.
Event-driven and group demand is modest relative to Oahu but meaningful. Destination weddings, incentive travel, and small corporate retreats support resort occupancy, supplemented by events such as the Ironman World Championship in Kona, the Kauai Marathon, and seasonal cultural festivals.
Nearby Amenities
Restaurants |
|||
|---|---|---|---|
| Kountry Kitchen Restaurant | American | $$$ | In Building |
| Pacos Tacos House | Mexican | $ | 2 min walk |
| Sukhothai Cafe | Vietnamese | - | 2 min walk |
| Wahine Weenies - A Kapa'a Beach Sandwich Shack | American | - | 2 min walk |
| Honu Shave Ice | - | - | 2 min walk |
| Java Kai | Coffee | $ | 4 min walk |
| Coconut Coasters | Deli | $$ | 4 min walk |
| Chicken In A Barrel Bbq-kapaa | - | - | 4 min walk |
| Small Town Coffee | - | $ | 6 min walk |
| Olympic Cafe Restaurant & Bar | Cafe | $$ | 7 min walk |
Retail |
||
|---|---|---|
| Birkenstock | Shoes | 3 min walk |
| Bank of Hawaii | Finance Company | 5 min walk |
| First Hawaiian Bank | Bank | 6 min walk |
| Big Save | Supermarket | 9 min walk |
| United States Postal Service | Business/Copy/Postal Services | 11 min walk |
| CrossFit | Fitness | 15 min walk |
Property Taxes
| Parcel Number | 4-4-5-012-006-0000 | Improvements Assessment | $794,800 |
| Land Assessment | $449,100 | Total Assessment | $1,243,900 |
Property Taxes
Sale Advisor
Sale Advisor
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Hotel Coral Reef | 4-1516 Kuhio Hwy
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