Kamehameha Schools Sold Kona Village Land for $245 Million

The sale marks the latest move in a strategy to diversify the trust's assets to fund ongoing educational initiatives.

Updated on Oct. 8, 2026 in Commercial

Screen-print poster illustration of a stylized volcanic coastline with minimalist architecture, evoking Hawaiian land stewardship. — Kamehameha Schools sold the land under the Kona Village resort for $245 million to transition toward a more diversified investment model. AI Illustration. Upload story photo >

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Should charitable trusts sell historic land holdings to fund education programs if it severs local ties?

Kamehameha Schools has sold the land beneath the Kona Village resort on Hawaii Island to KW Kona Owner LLC for $245 million. This transaction is part of a broader shift by the trust to convert its extensive landholdings into a diversified investment portfolio.

Why it matters

The sale helps the trust realize immediate financial value to support its educational mission, which required $530 million in spending during the 2024-2025 fiscal year. By liquidating these assets, the trust aims to ensure the long-term productivity of its endowment.

Kamehameha Schools completed $1.2 billion in resort land sales over the last year, including the $245 million Kona Village deal, the $510 million Royal Hawaiian sale, and the $400 million Four Seasons Hualalai transaction. The Kona Village site includes a field containing over 400 petroglyphs.

The players

Kamehameha Schools

A private charitable trust that manages approximately 364,000 acres of land in Hawaii to fund educational programs for students of Native Hawaiian ancestry.

KW Kona Owner LLC

The investment entity associated with Kennedy Wilson, a global real estate investment firm that originally acquired the Kona Village resort in 2016.

The details

Trustees are acting under discretion granted by the 1883 will of Princess Pauahi to manage and sell real estate. The trust is moving away from purely land-based wealth toward a diversified investment model to secure more liquid funds for its schools. This transition allows the organization to reinvest in its core educational operations while moving away from direct land management at sites like the Kona Village resort, which previously closed in 2011 due to tsunami damage before reopening in 2023.

1883: Princess Pauahi wrote her will.
2011: Kona Village closed due to tsunami damage.
September 2025: Four Seasons Resort Hualalai land was sold.
November 2025: Royal Hawaiian resort land was sold.
October 2026: Kamehameha Schools sold the Kona Village land.

The Home Front

This transition marks a significant pivot in how one of the state's largest private landowners manages its historic portfolio to meet modern financial needs. The shift aligns with a broader trend of large institutional trusts diversifying assets to sustain funding levels amid rising educational costs.

Residents should monitor local property tax assessments and regional land-use policies, as ownership changes for major hospitality sites can influence local development patterns. Review your own property records or long-term lease agreements if you live on land managed by large institutional trusts.

The takeaway

Large-scale institutional real estate sales reflect a shift toward maximizing liquid assets for organizational stability. Homeowners should stay aware of how major local land transactions affect the character and economic activity of their surrounding neighborhoods.