Honolulu Council Approved Ala Moana Development

The city has cleared the path for a massive hotel and residential project at the Ala Moana Center.

Updated on Oct. 12, 2026 in Construction

Honolulu Council Approved Ala Moana Development

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The Honolulu City Council has unanimously approved an Interim Planned Development permit for a new project at the corner of Ala Moana Boulevard and Atkinson Drive. This development includes a 38-story hotel tower and a 17-story residential building.

Why it matters

This project aims to increase the city's housing stock and commercial capacity by integrating new residential and hotel space into the Ala Moana Center area. The development includes significant affordable housing requirements to help support local residents earning lower incomes.

The development plan features 291 hotel rooms and 214 residential units, with 69 of those apartments reserved for households earning up to 80% of the area median income. The project is projected to generate $1.56 billion in total economic output and $20.8 million in revenue for Honolulu County.

The players

Honolulu City Council

The local legislative body is responsible for approving land-use permits and regulating development within the city.

Ala Moana Center

This is a major retail and commercial hub in Honolulu that is serving as the site for the new multi-use development project.

The details

The project involves partial demolition of an existing parking structure at Ala Moana Center to make room for a six-story podium connecting the hotel and residential towers. It also adds 19,700 square feet of commercial space and a pedestrian retail corridor, while replacing over 500 parking stalls.

April 2025: The city established its affordable housing monthly rent guidelines.
March 2026: The developer officially submitted the project application.
October 2026: The Honolulu City Council granted unanimous approval for the development permit.

Market Landscape

This development reflects a broader urban trend of replacing sprawling surface parking at major commercial centers with high-density vertical living and hospitality hubs. By maximizing footprint efficiency, the project positions the Ala Moana Center to compete in an evolving real estate market that prioritizes mixed-use accessibility.

The project will remove over 500 existing parking stalls at the shopping center, which may alter parking availability for visitors. Residents in need of affordable housing may see new options, as the plan includes 69 units reserved for those earning up to 80% of the area median income.

The takeaway

Large-scale urban developments like the Ala Moana project are increasingly focusing on vertical density to balance the need for more hotel space and housing. Developers are also placing a greater emphasis on sustainability, such as this project's proposed gray water recycling system designed to save 30,000 gallons of water daily.