Aloha State Daily checked in with state lawmakers and transportation officials to see when hotels could come to Hawaiʻi Island’s two major airports. While the idea is moving forward, any construction remains several years away.
Hotels could eventually be built directly on the grounds of Hilo International Airport and Ellison Onizuka Kona International Airport after state lawmakers approved legislation in 2021 allowing airport hotel development. The bill, introduced by state Sen. Lorraine Inouye, who represents Senate District 1 on the east side of the Big Island, marked a first for both facilities.
Neither airport has ever had a hotel within its terminal or on immediate airport property, leaving travelers to rely on nearby accommodations. State officials say on-site hotels could improve convenience for visitors and help address lodging shortages, particularly in Hilo.
Inouye said the legislation allows hotels at both airports, but she believes Hilo should be prioritized.
“We can build a hotel at both places,” Inouye told ASD. “But my suggestion at this point is to have the hotel built in Hilo first instead of Kona.”
Inouye said a hotel at the Hilo airport could help meet immediate lodging needs, especially during major events.
“If we can build it now, we can accommodate hotel accommodations faster than our Banyan Drive project for our Merrie Monarch participants,” she said.
Hilo’s airport serves as a key entry point for visitors exploring East Hawaiʻi, including Hawaiʻi Volcanoes National Park, waterfalls and other natural attractions. While Hilo is not a major resort destination like Waikiki or West Hawaiʻi, it draws tens of thousands of visitors to nearby parks each month and functions as a transportation and service hub for the island.
An on-site hotel could provide lodging for travelers with early departures, late arrivals or short stays, while easing room shortages during peak events such as the Merrie Monarch Festival, according to state officials.
Hilo’s economy remains closely tied to tourism but is also supported by education, health care and agriculture. The region has faced challenges in recent years, including a declining working-age population and softer visitor numbers, but continues to leverage strengths in food production, research and logistics.
ASD also checked in with the Hawaiʻi Department of Transportation, which oversees the state’s airports. HDOT spokesperson Shelly Kunishige said the agency expects to issue a request for qualifications for a potential hotel developer at the Hilo airport in late March 2026.
“If there’s someone that meets the requirements, then a developer would be selected,” Kunishige told ASD. “We would be looking at this as a ground or concessionary lease, so the developer would be responsible for the cost of developing the hotel.”
Under that structure, the state would lease airport land, while the selected developer would finance, build and operate the hotel.
Kunishige said that even after a developer is selected, the project would still be subject to all state environmental and permitting requirements, including an environmental assessment. As a result, construction would likely not begin for several years.
Similar processes and timelines would apply to any future hotel development at the Kona airport.
State officials have not yet announced the size, number of rooms or exact location of a potential hotel at either airport.
For the latest news of Hawai‘i, sign up here for our free Daily Edition newsletter.
