Kona’s Iconic Hotel to Reopen as Hampton Inn Kailua-Kona Bay

The historic Uncle Billy’s Kona Bay Hotel is undergoing a $30 million transformation and will reopen as the Hampton Inn Kailua-Kona Bay in Summer 2025. The revitalization, led by 12th & A Hotel Partners in collaboration with Summit Capital, aims to preserve the hotel's 1960s Hawaiian charm while introducing modern amenities under the Hampton by Hilton brand.

The four-story semi-circle structure will retain its original design, but significant upgrades include new walls, furniture, and fixtures. The iconic wooden boardwalk will be replaced with a durable composite material, and a second elevator will be added to meet Hilton’s standards. To enhance sustainability, the property will feature 340 LED tiki torches, replacing traditional kerosene wicks. Managed by PEG Hospitality Group, the hotel will offer 123 rooms, a fitness center, a pool, and a pavilion for cultural activities.

One of the highlights of the new property is the Island Bar and Grill by Trader Vic’s, a Polynesian-themed restaurant paying homage to the original creator of the Mai Tai cocktail. Guests can enjoy local island cuisine, while an outdoor common area with a firepit and bar will provide an inviting space for both leisure and business travelers.

To honor Hawaiian traditions, a blessing ceremony was held on December 10, 2024, led by Kahu Danny and Anna Akaka. Community leaders, including Mayor Kimo Alameda, expressed gratitude for the project’s commitment to preserving local culture while fostering economic growth.

The project is a collaboration between Honolulu Builders (General Contractor), Level 3 (Interior Design), AM Turner Architects, and Koa Design Group (Architectural Design). With this transformation, the Hampton Inn Kailua-Kona Bay is set to offer a blend of history, hospitality, and modern comfort, reinforcing its place in Hawaii’s vibrant tourism landscape.