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Kauai hotel continues construction amid legal battle

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HONOLULU (KHON2) -- Construction on the Coco Palms Hotel on Kauai is continuing as scheduled despite last week's court ruling.

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The foreclosure judgment four years ago was invalid because the loan servicer -- not the lender -- filed the claim, the Intermediate Court of Appeals said last week.

The developer, Reef Capitol Partners, owns both the current ownership group, RP 21 and the previous ownership group, Coco Palms Hui. This indicates that the ruling is a technicality for the lender.

The 350-room project is scheduled to be completed in 2026.


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