It was one of the last remaining pieces of beachfront land in Waikiki that was still owned by a Hawaiian trust. Now, though, the land under the iconic Royal Hawaiian Hotel, also known as the “Pink Palace of the Pacific,” has been sold.

Landowner Kamehameha Schools announced earlier this month that it had sold the 10.3-acre parcel for $510 million to Daisho Co. Ltd., a Japan-based real estate company. It’s the second major property sale the trust has sold this year. In September, it sold nearly 500 acres under the Four Seasons Resort Hualalai on Hawaii Island to billionaire Michael Dell for an estimated $400 million.

Daisho’s portfolio holds $1.5 billion in assets with properties located in Singapore, Japan and Australia. The company “acquires and develops select properties for long-term retention,” according to its website. The Royal Hawaiian Hotel will continue to be operated under its long-term land lease, according to Kamehameha Schools’ announcement, by Kyo-ya Hotels & Resorts, which has a long history in Waikiki; the company also owns the Moana Surfrider and the Sheraton Waikiki.

Kamehameha Schools is a private trust founded by the will of Hawaiian Princess Bernice Pauahi Bishop in 1884 to improve the education of Native Hawaiians. It is the largest private landowner in the state, with around 364,000 acres in its portfolio, and its endowment has an estimated $4.7 billion in Hawaii real estate, according to a 2024 annual report.

“We are always emotional when we sell land because all aina [land] is special. We only sell after much deep and agonizing consideration,” Crystal Rose, chair of the Board of Trustees of Kamehameha Schools, said in a Nov. 7 news release. “Our kuleana [responsibility] is to steward a dynamic portfolio that best serves our trust. At the same time, we know that our lands carry historical significance, especially this one, which our founder and generations of alii [royals] before her had nurtured.”

The Royal Hawaiian Hotel opened in 1927. At the time, Kamehameha Schools wanted a hotel built on the property, and Matson Navigation Co. invested $4 million in building the luxurious resort for its Matson passengers, the hotel explains on its website. Its Moorish style of architecture with a pink stucco finish became an iconic symbol for tourism in Waikiki.

Kamehameha Schools still owns land under the neighboring Royal Hawaiian Center, including Helumoa, the historically and culturally significant royal coconut grove. It’s the last piece of land the trust owns in Waikiki, and in the Nov. 7 announcement, the trust explicitly said that it is not considering selling the Helumoa land at this time. 

The nonprofit Queen Emma Land Co. is the last of the Native Hawaiian-serving organizations to own beachfront property in Waikiki, according to public records. It is the fee owner of the land under the Outrigger Waikiki.

Why Kamehameha Schools decided to sell the land under the Royal Hawaiian Hotel is still unknown, but its CEO Jack Wong said in a statement included in the Nov. 7 announcement that “it is best to sell the fee simple at this time.” SFGATE reached out to Kamehameha Schools for further comment but was told it’s not making additional statements at this time.

Generally, the trust generates income from land leases to put toward its mission of educating Native Hawaiians. “Today, competition is global and intense,” Wong said in a statement in October about the launch of the trust’s 2030 strategic plan. 

“To endure, we must excel at financial management. Yet financial strength alone is not enough,” he continued. “True success comes when stewardship and strategy work together, when we malama aina [care for the land] to educate keiki [children], care for ecosystems, create homes and jobs, grow food, restore culture and strengthen identity.”

Aside from selling land, in recent years Kamehameha Schools has purchased approximately 11,000 acres, including a 656-acre ranch on Hawaii Island and a 3,885-acre parcel above Lahaina on Maui.

Editor’s note: SFGATE recognizes the importance of diacritical marks in the Hawaiian language. We are unable to use them due to the limitations of our publishing platform.