Outright ownership of Big Island hotel acquired by investment firm for $23 million

A hospitality-focused investment firm dedicated to elevating hotel, resort and private club real estate — named for the octopus, with “nine brains” but one purpose — is now the outright owner of Pacific 19 Kona on the Big Island.

The 150-room Pacific 19 Kona property — formerly Kona Seaside Hotel — is located at 75-5646 Palani Road in Kailua-Kona, across the street from the Courtyard by Marriott King Kamehameha’s Kona Beach Hotel and near OpenAI CEO Sam Altman’s Hawai‘i estate.

The firm acquired full fee-simple ownership of the hotel for $23 million. The sale comes 4 years after the firm in 2022 purchased the ground lease for the hotel.

Nine Brains entered its ground lease agreement with the option to buy full interest, which was finalized July 1 when it closed the $23 million deal with the hotel’s previous owner Lanihau Properties.

The company assumed the ground lease after the Kimi family, which operated the Kona Seaside Hotel for many years, said it would not renew its lease at its expiration.

Nine Brains since renovated and rebranded the property as Pacific 19 Kona. It also purchased in 2023 for just less than $4.48 million a neighboring parcel with two other structures encompassing 30 units.

That property was absorbed, bringing the total number of rooms at Pacific 19 to the 150 it has today.

The hotel — which Nine Brains promotes as “Your Big Island Basecamp” — was reimagined as home base for modern explorers.

“Designed to help guests discover the island’s diverse landscapes and experiences, the hotel offers a stylish, adventure-ready home base on the Kona Coast,” says the Nine Brains website. “Pacific 19 has been recognized for its distinct hospitality ethos and strong performance, serving as the flagship for the Pacific 19 brand.”

Pacific 19 Kona is the only publicly announced project for Nine Brains; however, its partners developed or operated a number of marquee hotels in the islands, including the Hualālai Resort, Kona Village Resort and the Kukio Golf & Beach Club.

“We are looking to serve a new generation of traveler who is more connected and digitally savvy than ever before, demands thoughtful design over traditional luxury and wants opportunities for authentic and locally relevant experiences all wrapped in a value-oriented hotel stay,” Nine Brains Managing Partner James Evans told Pacific Business News in 2023 upon the hotel’s reopening following renovations.

The Santa Monica, Calif.-headquartered company invests in real estate with high barriers to entry and authentic local identity. Its expertise is in brand creation, management and execution that enable the company to unlock long-term value and create competitive advantage in each opportunity.

Primary focus of Nine Brains is properties in Hawai‘i. It also pursues select investments on the U.S. West Coast. It’s target is high-value opportunities, where it can apply its investment, branding and marketing approach to drive similar transformative results.

Each Pacific 19 room has everything the modern adventurer needs — from drinks and snacks to island essentials such as dry bags and sunblock — for rinsing off and cleaning up, resting up and getting ready for another inspired day of exploration.

“At the end of the day’s adventures, come home to carefree comfort,” the Pacific 19 website says. “In each distinct, design-forward room, every detail was thoughtfully chosen with explorers like you in mind: inspiring local photography, luxurious linens and towels, high-end toiletries and an in-room macro bar (not to be confused with a mini bar).”

Click here to see additional photos of the hotel property. Visit the Pacific 19 Kona website to book your stay now!