Hawaii County’s 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 Pu‘u‘eo area of Hilo, the hotel was established by the Alexander family in 1968.

“Through this sale, the Dolphin Bay Hotel will continue its legacy of serving the Hilo community,” said Mayor Kimo Alameda in a news release. “I want to thank the Alexander ‘ohana for partnering with the county to ensure these units stay affordable in perpetuity.”

The $2.68 million acquisition

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