Famous Waikiki Hotel Shuts Down

by Deidre Woollard (RSS feed)
Jul 10th 2009 at 11:00AM

One of Waikiki's most recognizable hotels will no longer be open for guests. The Y-shaped Ilikai hotel on Waikiki Beach (shown above, hotel not pictured) opened in 1964 but came to national attention in the 1970s when it used in the opening sequence of the "Hawaii Five-0" television show. But now the hotel has closed because its new owners were losing several hundred thousand dollars a month.

In its nearly five decades the 30-story Ilikai has hosted U.S. Presidents and celebrities, especially during its 1960s and 1970s heyday when stars like Elvis Presley, Stevie Wonder and Lucillle Ball visited. But the hotel has fallen on hard times recently. New York-based iStar Financial Inc. bought the hotel for $51 million at a foreclosure auction in May and has decided it was too expensive to keep the hotel open. The move puts around 75 employees out of business. There were 203 hotel rooms in the 1,000-unit hotel-condo-timeshare property and guests staying at the hotel at the time of closure were relocated elsewhere. Operations related to the condo units are not affected. The hotel was an 800-room hotel operation just a few years ago before it was sold off into time share chunks.

Employees have said their tearful goodbyes but are holding out hope that the new owner will reopen the Ilikai with the same union crew. On the day before the closure workers rallied to save their jobs. Hawaii has seen many of its tourism jobs affected as hotel occupancy rates have plummeted. Recently the Hawaii Tourism Authority unveiled a new initiative aimed at boosting short-term travel to Hawaii by focusing on courting visitors from Japan.

UPDATE: The AP is reporting that the four dozen employees of the Ilikai hotel got their jobs back on Friday when their labor union and the property's new owner struck a new deal. Those employees that won't be rehired will receive severance packages.

Gallery: Hotels In Transition

Tags: beach, hawaii, waikiki

Filed under: Luxury Travel & Hotels

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Reader Comments (Page 2 of 2)

don cross Jul 10th 2009 6:18PM

Actually, it is a crummy beach where those big hotels are. Not only that, but the entire island is over loaded with too many people. Obama needs to limit the number of tourists that can go to the island. Sort of like limiting the number of tourists in some national parks. And, have you ever driven to the other side of the island, past Pearl Harbor? it is something like a slum in Mexico. The Hawaiians are not very big on taking care of things and they are not really friendly to tourists. After Obama reestablishes relations with Cuba, that will be the place to go.

Carol Thomas Jul 10th 2009 7:21PM

well aren't you just a little obma butt kisser

lepfan069 Jul 11th 2009 6:43AM

hey don
maybe you should dig your head out of your ass! most people that live in hawaii and in the pearl harbor area that you've seen driving by (on what a bus) are busting their ass to survivie. oh and by the way pearl harbour is not on the other side of the island. here's some advice "don't judge someone until you've walked a mile in their shoes."

Kathy Jul 10th 2009 7:49PM

Wow, hearing the 5-0 theme song and hearing the news about the Ilikai makes me sad. I miss Hawaii! But hearing all the negative postings makes me sadder. Especially the one from the person who has never been to Hawaii, doesn't have accurate facts about their marriage laws, yet feels he has the right to tell the entire state they suck. It bothers me that postings can't seem to stay on subject anymore and have become a vehicle for people to vent their anger and hatred. Live aloha.

Jaqson Jul 10th 2009 9:26PM

They tooo hungry fer miney !!!

evelyn Jul 10th 2009 8:26PM

We lived in Hawaii for 8 years and used to go dancing at the Ilikai Hotel which was waaaaay up at the "top of the I" a round thing kind of like the Space Needle in Hawaii. The glass elevator went straight up from the ground all the way to the top - going through a dark area, then out in the open where you could see Diamond Head and the yachts in the harbor. One time when we were waiting for the elevator, this couple was standing by the door waiting to go down from the club too and they were making out - a real tongue-lashing, then when the elevator arrived, the woman got on and the man said "nice to meet you" and went back to the dance floor. Every time we ever went to the Ilikai after that, my husband would always give me a big kiss like that and say "nice to meet you" or "what did you say your name is?" or some dumb thing. Thanks for the funny memory.

Lisa Jul 10th 2009 11:13PM

Nope, can't agree with Tammy - especially since the show is CSI Miami....and David Caruso can't compare with Jack Lord. not even close.

Pat Jul 11th 2009 6:26AM

Ilikai Hotel to reopen 'soon'

Looks like it was a bargaining ploy for the staff.

http://www.bizjournals.com/pacific/stories/2009/07/06/daily47.html

Bkay Jul 11th 2009 6:32AM

I spent a week at the Illikai in 1982 and it was a great hotel. It was beautiful, great rooms, great bars and friendly service. I stayed there again in March 2008 and while the lobby area was beautiful and the room was nice the rest of it sucked. Only one of the pools was open, all the bars & resturants were closed except for the Top of the I restuarant.

Jm Jul 11th 2009 6:39AM

Wonder why they company bought the place for millions and then close it up, what a waste of money. Sounds like a hotel in my town, the place went bancrupt and the new owners closed it too.

Scarm1228 Jul 11th 2009 7:12AM

It is touching how places people went to as a child, went on vacation at various ages hold memories of that time and age. We all remember Hawaii 50. You will be missed.

Lina

Maxie Jul 11th 2009 7:47AM

I lived in Hawaii for a few years way back, but have returned periodically for visits. I stayed in the Ilikai twice, but would never do it again. Waikiki is no longer friendly to mainlanders, as all the focus is on visitors from the orient. I've nothing against Koreans, Chinese or Japanese, but if I want to travel to the far east, I'd go there.

Walking down the streets is like walking in the Ginza, complete with walls of tall, ugly buildings. Everything from restaurants to shops is geared towards visitors from the far east, even signs and food. What's worse, the constant building makes for noise, messes, ugliness. The beach is bad too... very narrow, often dirty, with beggars, thievery and drug selling. There's nothing left of old Hawaii in Waikiki or Honolulu. Anything that seems Hawaiian is fake.

The old Ilikai is right in the middle of the overbuilt ugliness. It's beach is narrow and uninviting, the hotel dated, priced too high. You couldn't pay me to stay there again. When we visit Oahu now, we stay somewhere outside what we call the traffic jam area. Waikiki had it's day, but it's gone, ruined by overdevelopment.

joepaduano Jul 11th 2009 8:39AM

Hey CAROL THOMAS, what's an Obma? Not too intelligent are you?

Angela Cupp Jul 11th 2009 8:44AM

Hawaii Five Oh was my very favorite show when I was a kid. The theme from that show made me want to fly on an airplane and go to Hawaii. Well, I'm 42 yrs old and 1-1. I married an airline pilot, but we still have never made it to Hawaii!! And now, the very hotel I always wanted to stay in, has gotten bad reviews here on the message boards. I guess if we want vintage, we will have to stay at the Royal Hawaiian Hotel, still very vintage according to what we have heard. Oh well, "progress" ruins another historic place!

Bob Jul 11th 2009 8:40AM

I can just imagine Luicille Ball checking into a smoke free hotel.

mattcoleman76 Jul 11th 2009 3:29PM

Back in the 60's and 70's, it probably wasn't smoke free as it is today

tokeeno Jul 11th 2009 8:59AM

Kam Fong as Chin Ho

debbie5625 Jul 11th 2009 6:26PM

Loved hearing Hawaii 5-0 Theme again and seeing the sights in Hawaii. (Aloha Clock, Punchbowl as well as Ilikai.) I agree w/ Angela Cupp - the theme from Hawaii 5-0 does make you want to get on a plane and fly to Hawaii and in the mid-70's I did go there for college for three years. (I probably was influenced by the Elvis and Gidget movies too.) I am just days back from a visit to Hawaii and I still do love the hotels on Waikiki beach and the restaurants there but the up and coming areas seem to be Ko Olina and Turtle Bay. I have been to Florida this year too which is gorgeous but Hawaii will always hold my heart. The beaches, the surf, the tradewinds, the mountains - Hawaii has it all. The Aloha spirit is still there and the fact that it is a worldwide attraction appeals to me. I was more saddened by the amount of homeless people in the Ala Moana Beach area. That was not going on in Hawaii 30-40 years ago and not sure what economies were lost or what contributes to this (drugs? Lack of mental health facilities?). However, these are social problems definately increasing in many cities all across the U.S. and I was just as saddened to see it in places like Chicago as Hawaii. Yes there is always constant building and changing in Waikiki but the oceanfront hotels in Waikiki have not changed over the years on the main strip. I like the Outrigger oceanfront properties and the Hilton Hawaiin Village. I dream of one day staying at Halekulani or the Royal Hawaiian. However, most hotels are constantly updating and redoing the hotel rooms and it sounds like the owners of the Ilikai may have failed to keep pace. I only visited it once when someone else stayed there and was surprised how huge it was - rooms were like apartments with separate bedrooms/ living room/dining room. I can see how they became timeshares. Anyone going to Hawaii should give a few days to Waikiki as it still has much to offer but I do love seeing all of the island and there are no shortage of quieter less populated beaches to go to. The best thing about Hawaii is that is a true melting pot of people with so many cultures represented and living side by side. The sad part is that despite that, prejudices and misunderstandings between people still exist and you can find it in the attitudes of the mainlanders who visit Hawaii as well as the locals who do not always feel kindly to the visitors.

Clarence Williams Jul 12th 2009 4:43AM

Hey, Tammy, I concur. But guess what?, it's CSI Miami.....not NCI.

John Lehr Jul 11th 2009 8:20PM

Annabelle's at the top was a fab. night club and I spent a lot of time here in the 70's Will really miss the Illiaki .....Wonderful hotel .....

fumar

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