For centuries, Kaiakeakua (also spelled Kaiakekua) was a favored place for royalty. Kamakahonu Royal Center at Kailua Bay was the residential compound of Kamehameha I from 1813 until his death in 1819. It had previously been the residence of a high chief, and it was undoubtedly a residential area back into the centuries prior to European contact.
During Kamehameha’s use of this compound reportedly 11 house structures were present. These included his sleeping house, houses for his wives, a large men’s house, storehouses and Ahuʻena heiau. Kamehameha’s entourage (wives and chiefs, etc) had homes surrounding Kaiakeakua Bay (we now call it Kailua Bay in Kona).
Liholiho’s (Kamehameha II) house was where the Kona Inn is; Keōpūolani (mother of Kamehameha II and III) had her house on the south side, at Oneo Bay; and Ka‘ahumanu’s house was adjacent to (on the south side of) what is now Mokuaikaua Church property.
Fast forward … a couple pioneers in neighbor island hospitality helped form Hawaiʻi’s early fledgling visitor industry. At the time, emphasis and facilities were focused in Waikīkī. However, two locally-grown chains saw the opportunities and put their attention on the neighbor Islands.
The first, Inter-Island Resorts under the Child family, grew into a number of ‘Surf Resorts’ on the neighbor islands; the other, Island Holidays, under the Guslanders, had several neighbor island ‘Palms Resorts.’
With several smaller business-oriented hotels downtown Honolulu and spotted across the neighbor islands, on November 1, 1928, the Kona Inn in Kailua-Kona (at the place of Liholiho’s house), the first neighbor island visitor-oriented resort hotel, opened with great fanfare. (Hibbard, Schmitt)
The Inter-Island Steam Navigation Co originally intended to build the Kona Inn on the site of Huliheʻe Palace. The idea was met with considerable opposition and the Territory bought the Palace and the company erected its new hotel on a 4-acre parcel adjoining the former Royal Residence. (Hibbard)
A Star-Bulletin editorial noted on February 7, 1928, “The land of the first Kamehameha; the land which cradled the old federation of the Hawaiian Islands, the storied land where an English ship’s captain was worshipped before natives found him human and slew him there …”
“… is to be opened at last to the comfort-loving tourists of the world. … Soon after the completion of the hotel, the territory will have cause to be grateful to the foresight and enterprise of Inter-Island.” (SB, Feb 7, 1928)
It wasn’t until 1955, in the area where Ka‘ahumanu lived, that Guslander brought his competing Palms Resorts to Kona, and was the third facility in the hotel chain that included the Maui Palms and the Coco Palms on Kauai. (HTH Sep 6, 1955)
“The former Kailua-Kona Hotel, now a part of the Kona Palms operation, provides an additional 16 rooms for a combined total of 38 rooms which will be available.” (HTH Aug 26, 1955) “A new restaurant and cocktail lounge, the Kona Marlin club will open between July 5 and 10 as a part of the Kona Palms development though operated by another lessee.” (Adv June 12, 1955)
At the dedication of the hotel and restaurant (Kona Palms and the Kona Marlin Club), “The Rev Abraham Akaka of Haili church gave the dedication prayer, anointed the old stone of King Kamehameha I and Queen Kaahumanu’s residence still at the site, and cut the cord which combined ‘the old and the new’ of Kona.” (Adv Sep 7, 1955)
In 1964, “The Kona Palms Hotel in Kailua-Kona has been sold to the former-publisher of the Honolulu Advertiser and his wife Mr. and Mrs Lorrin P Thurston … the property was sold because … [the owner] will make a substantial investment in the Outrigger Hotel being developed by Roy C Kelley between the Royal Hawaiian and Moana Hotels.” (SB July 11, 1964)
Then, in 1972, “HC [‘Pat’] Patterson … announced forthcoming development of The Dolphin Condominium in Kailua, Kona. The four-story condominium apartment is planned as 75 residential units and some 10,600 square feet for retail specialty shops and office condominiums”. (HTH Feb 27, 1972)
“HC Patterson, the creator of the Dolphin Condominiums in Kailua, Kona, has lived on the Big Island since his return from Japan in 1962. In Japan, he had been involved in plywood manufacturing in Osaka and the logging industry in Fiji.
“Patterson built the Marlin Plaza in 1962, which was Kona’s first modern shopping center, and the Dolphin Plaza in 1964, which is adjacent to the Marlin.” (HTH May 8, 1975)
Unfortunately, “Glenn Construction Corp, one of the Big Islands’ contracting firms, has gone out of the active construction business. The firm’s apparent financial demise leaves behind a tangled web of more than 80 unsettled lawsuits and countersuits [most involving subcontractors claims of not being paid] … The majority of these involve work on the Kona Dolphin condominium …” (SB Oct 31, 1974)
The Dolphin condominium property went into foreclosure and project lender, Independence Mortgage Trust Co of Georgia, was the only bidder and ended up with the property. (SB May 20, 1976) Shortly thereafter, the Dolphin project name was changed to Kona Plaza.
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