Peter Savio, a Honolulu-based developer, would become the new operator of Uncle Billy’s Hilo Bay Hotel in a bid to keep the kama‘aina business running until the site is redeveloped, a state official confirmed.
Peter Savio, a Honolulu-based developer, would become the new operator of Uncle Billy’s Hilo Bay Hotel in a bid to keep the kama‘aina business running until the site is redeveloped, a state official confirmed.
The hotel on Hilo’s Banyan Drive announced last month that it was to close Monday after more than 50 years in business.
But instead of saying aloha, manager Aaron Whiting, grandson of founder William J. Kimi Jr., said the family will continue running the hotel until Feb. 12 when the state Board of Land and Natural Resources will consider transferring its expiring land lease to Savio. The lease will become a month-to-month revocable permit next month.
The hotel would continue operating during the transfer.
Whiting declined to disclose who the new owner would be, saying they wanted make the announcement themselves. But he said the hotel will continue to take reservations, including for the upcoming Merrie Monarch Festival, which starts in late March.
“We’re not closing, we’re not selling any furniture, we’re not doing anything,” he said.
The hotel employs 37 people and no staffing changes are proposed, Whiting said.
Savio, who was born in Hilo, was confirmed as the proposed buyer by Russell Tsuji, state Department of Land and Natural Resources land manager. Savio, who also owns Waiakea Villas in addition to other properties throughout the state, couldn’t be reached for comment.
Tsuji said he will recommend the Land Board approve the deal.
With the hotel nearing the end of its useful life, he said DLNR still wants to see the site redeveloped. The department would not be negotiating a new lease for the hotel.
Redevelopment of Banyan Drive properties will be the focus of a new county agency the Windward Planning Commission will discuss forming Thursday. The Banyan Drive Redevelopment Agency, if approved by the County Council, would be responsible for overseeing land leases and drafting a master plan for East Hawaii’s resort area.
Uncle Billy’s is one of three Banyan Drive sites with expiring land leases. The others are Country Club Condos and Reeds Bay Resort Hotel.
Email Tom Callis at tcallis@hawaiitribune-herald.com.