Situated above the Pacific Ocean along Hawai‘i Island’s Hāmākua Coast, the aptly named Hāmākua Hotel is for sale with a $10 million asking price.
The eight-room luxury boutique hotel is located about 20 minutes north of Hilo on 3.4 fee simple acres at 28-3514 Hawai‘i Belt Road in Honomū. According to the listing, it’s the only permitted hotel along the 55-mile Hāmākua coastline.
The hotel operated as a bed-and-breakfast called Palms Cliff House for 25 years, its website noted. It was acquired by Eric and Lori Lochtefeld during the Covid-19 pandemic and, for a few years, was used as their home and to host private retreats, the site states. But an anniversary trip to Italy in the summer of 2023 inspired the couple to transform the property into a luxury hotel “with a focus on great culinary and storytelling.”
The property underwent a $2.5 million renovation completed in 2024, which added an infinity-edge pool and spa barn, upgraded guest rooms and modernized infrastructure, the listing notes. Meanwhile, “an exclusive option to acquire 22 contiguous acres unlocks the ability to create a 25.5-acre oceanfront estate with nearly one mile of coastline.”
Kevin Aucello, principal with Powell & Aucello, a Honolulu-based hotel brokerage and consulting firm, has listed the property. In an email to Aloha State Daily, he says that now the hotel is operating smoothly, the owner “understands that new ownership and fresh ideas will help the property continue evolving while also giving him the flexibility to pursue other interests.”
It's not often that a property of this nature becomes available.
“Oceanfront, fee-simple hotels in Hawai‘i almost never come to market — especially those nestled on a bluff overlooking the Pacific, a setting that makes this offering even more exceptional,” Aucello says. “Being the only permitted hotel along this coastline further underscores its rarity.”
When asked about the visitor demand for hotels like this on Hawai‘i Island, Aucello answers the question with one of his own: “Who wouldn’t want to stay in a boutique hotel that feels like it belongs in ‘Architectural Digest’ — a place perched above the Pacific, where every meal feels intentional, personal and deeply connected to Hawai‘i?
“Travelers today aren’t just looking for a bed, they’re looking for moments,” he continued. “And when a hotel pairs incredible design with cuisine that honors local ingredients and the island’s food culture, it creates the kind of memories people come back for year after year.”
Aucello says that demand for boutique hotels that offer “this level of authenticity, setting and culinary craft,” has long outpaced the supply on the Big island.
“Guests are drawn to properties that feel rooted in place — where the views, the architecture and even the meals tell a story,” he says. “Those are the hotels that consistently outperform and build loyal followings.”
And from an investor’s perspective, Aucello says interest is just as strong.
“Boutique hotels are a rare niche with high barriers to entry and limited inventory,” he continued. “But what truly sets this segment apart is the type of buyer it attracts. These opportunities don’t typically draw private equity or institutional money — they resonate with hoteliers who have an entrepreneurial spirit, people who love the craft of hospitality and want to shape something unique and meaningful.”
According to Aucello, the property’s 2024 renovation and reopening as Hāmākua Hotel created a “turnkey opportunity with immediate operating momentum.”
“It’s an ideal investment for an individual, couple or entrepreneurial group looking to own a truly distinctive luxury boutique hotel — one that blends lifestyle appeal with strong guest demand,” he says. “It’s also a small enough operation that a new owner can immediately infuse their personality, creative ideas and vision into the guest experience, something rarely possible in larger hospitality assets.
“At the same time, the property is perfectly suited for a small luxury brand seeking to expand its presence in Hawai‘i, offering a rare combination of oceanfront positioning, thoughtful design and personalized hospitality that aligns with experiential luxury.”
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
