Kamehameha Schools Sold Kona Village Resort Land

The trust finalized the sale of the Hawaii land for $245 million to diversify its education-focused investment portfolio.

Updated on Oct. 8, 2026 in Commercial

Gouache-painted editorial illustration of a lush palm frond against dark volcanic rock, evoking Hawaii's landscape and institutional real estate shifts. — Kamehameha Schools finalized the $245 million sale of its Kona Village resort land, aiming to bolster funding for its expansive educational programs. AI Illustration. Upload story photo >

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Kamehameha Schools sold the land beneath the Kona Village resort to KW Kona Owner LLC for $245 million. This transaction is part of a broader strategy to divest from real estate holdings and generate capital for educational initiatives.

Why it matters

The sale allows the trust to convert land assets into a more diverse investment portfolio, aiming to increase annual funding for its educational mission. This move follows a year of significant resort land liquidations intended to maximize financial productivity for the trust.

Kamehameha Schools manages a total portfolio of approximately 364,000 acres of land. The Kona Village property site includes a historical petroglyph field containing over 400 distinct petroglyphs.

The players

Kamehameha Schools

This private charitable educational trust was established under the will of Princess Pauahi to serve students of Hawaiian ancestry.

KW Kona Owner LLC

This entity is an affiliate of Kennedy Wilson, a global real estate investment firm that originally acquired the Kona Village resort in 2016.

The details

Kamehameha Schools trustees executed the sale by utilizing discretion granted under the 1883 will of Princess Pauahi. The organization, which spent $530 million on education in the 2024-2025 fiscal year, is shifting away from direct land management to increase liquidity for school operations.

Princess Pauahi wrote her will in 1883.
Kona Village closed following tsunami damage in 2011.
The trust sold the Four Seasons Resort Hualalai land in September 2025.
The trust sold the Royal Hawaiian resort land in November 2025.
Kamehameha Schools sold the Kona Village land on October 8, 2026.

Culture Shift

The transition from direct land ownership to a diversified financial portfolio reflects a broader movement among large institutional trusts to prioritize immediate fiscal yield over legacy real estate holdings. This change marks a departure from the historical land-retention model that defined the organization's growth for generations.

The change in land ownership shifts the long-term management of the Kona Village property site while ensuring the trust maintains its educational operations. Residents and stakeholders may see continued evolution in how large-scale trusts manage their significant land assets across the islands.

The takeaway

The sale underscores how large institutional trusts are increasingly prioritizing liquid investments to sustain high-cost operational missions. This strategy highlights the evolving balance between maintaining ancestral landholdings and ensuring the financial sustainability of educational institutions.