The Hawaiʻi County Office of Housing and Community Development has purchased the Dolphin Bay Hotel in Hilo, with plans to convert guest rooms into 18 affordable rentals.

Studio, one-bedroom, and two-bedroom apartments will be available for residents earning up to 50% of the Area Median Income. The first units are anticipated to be ready in early 2026, pending renovation schedules and permitting timelines.

Located in the Puʻuʻeo area of Hilo, the hotel was established by the Alexander family in 1968.

The $2.68 million acquisition was made possible by utilizing federal funding from the Emergency Rental Assistance 2 Program.

Mark Development Inc. has been selected to manage the property and will provide updates on applying for units in the coming weeks.

For more information, visit www.mdihawaii.com

 

Photo credit: Office of Mayor Kimo Alameda