Kamehameha Schools Sells Kona Village Land to Kennedy Wilson for $245 Million

Kamehameha Schools sold the land beneath Kona Village, A Rosewood Resort in Kaʻūpūlehu, Hawaiʻi Island, to KW Kona Owner LLC, an investment affiliate of resort lessee Kennedy Wilson, for $245 million. The transaction closed Sept. 25, 2026.

Kamehameha Schools Sale: Deal Details

The sale covers the land beneath the resort in Kaʻūpūlehu, North Kona, on Hawaiʻi Island. Kamehameha Schools was the seller. The buyer, KW Kona Owner LLC, is an investment affiliate of Kennedy Wilson, which already held the resort's lease through another affiliated entity. The transaction converts Kennedy Wilson's position from leasehold to land ownership.

The transaction involves the underlying resort land and not necessarily the operating resort business or its improvements.

Kaʻūpūlehu Land Position Retained

The resort sits within a broader Kaʻūpūlehu resort area that also includes Four Seasons Resort Hualālai. Kamehameha Schools said it continues to steward more than 16,500 acres in Kaʻūpūlehu despite the sale.

Kamehameha Schools manages approximately 364,000 acres statewide. Proceeds from its land portfolio support its educational mission for Native Hawaiian students.

Kennedy Wilson Gains Control of Resort Land

The purchase gives Kennedy Wilson control of the land beneath a luxury resort it already leases and operates through an affiliate. Ownership of the land eliminates the separation between the resort operator and the underlying landowner, a structure that can affect long-term control over capital improvements, refinancing, resale value and future resort planning.

Hawaiʻi Hospitality Market Backdrop

Hawaiʻi hotel performance data provide context for the transaction. In February 2026, statewide hotels recorded revenue per available room (RevPAR) of $302, up 1.0% year over year, with an average daily rate (ADR) of $383 and occupancy of 78.8%. Luxury-class properties recorded RevPAR of $549, ADR of $757 and occupancy of 72.5%.

By May 2026, statewide RevPAR stood at $253, up 5.3% year over year. ADR rose 2.2% to $345, and occupancy reached 73.5%. Room supply increased 0.1% during the period, compared with a 3.1% increase in room demand.

Broader commercial real estate investment activity has remained tempered by elevated borrowing costs and economic uncertainty, conditions that may favor transactions involving existing operating assets with known cash flow.

Outlook

For Kamehameha Schools, the sale monetizes a high-value resort landholding while preserving its larger land position in Kaʻūpūlehu. For Kennedy Wilson, it consolidates control of the real estate beneath a resort it already operates through an affiliate.

Sources

Kamehameha Schools: https://www.ksbe.edu/article/kamehameha-schools-sells-kona-village-land-in-kaupulehu