The long-awaited Atlantis Resort — a vision that goes back about a decade — is back on the table for Hawaii.

China Oceanwide Holdings on Feb. 26 completed the transfer of approximately 44 prime oceanfront acres, spanning two lagoons at Ko Olina, to California-based Kam Sang Co. Inc., according to Ko Olina’s master developer, The Resort Group.

The deal moves Hawaii closer to getting the U.S.’s first-ever Atlantis Resort. It also puts Ko Olina, which is just over 50% built, on the path again to reaching full build-out. That so-far elusive milestone is expected to generate $9.5 billion in economic impact, including more than $300 million in annual tax revenues, and create more than 40,000 permanent jobs, according to data from global hospitality consulting firm HVS.

Kam Sang has agreed to become the lead developer of the planned Atlantis Resort, which was previously announced in December 2016 as part of a partnership between Kerzner International and China Oceanwide. Kam Sang also is exploring other hotel and resort brands including the Regent (IHG), the Mandarin Oriental, the St. Regis, the Waldorf Astoria, the Fairmont (Accor) and others.

Jeff Stone, CEO and president of The Resort Group, said in a statement, “We are very pleased to introduce Kam Sang and the Lam family to Hawaii. They embody the spirit and quality of development we envision for Ko Olina’s future.”

“Over the last 27+ years, my family has dedicated itself to building a sustainable, Hawaii focused hospitality community that enriches the lives of our local residents and offers unforgettable experiences for our visitors,” Stone said. “These projects will generate more quality, high-­paying jobs and fuel the economic engine we created with the support of our governor and mayor. We remain committed to supporting our community and acting as mindful long-term stewards of this special place.”

At the same time, new development partners are advancing a previously delayed plan to revitalize one of Hawaii’s oldest and most popular tourist attractions, Paradise Cove Luau, on a site that is located between Aliinui Drive and the shoreline, which is not part of Ko Olina Resort but is adjacent to its entrance and is expected to help create critical mass for West Oahu tourism.

“For Hawaii to have the first and last Atlantis Resort in the U.S. is huge, and that along with The Cove redevelopment is creating more buzz and interest in Ko Olina,” said Mufi Hanne­mann, chair of the Hawai‘i Tourism Authority and president and CEO of the Hawai‘i Lodging and Tourism Association. “As a destination we are facing increasing competition, and more importantly people always want to know what’s new and what’s different about Hawaii. With the Aulani there, with the Four Seasons there, and now Atlantis Resort poised to be completed in five years, it just supports the idea that we are a world-class destination.We aren’t a tired old place. We continue to evolve.”

Waikiki, with more than 31,000 lodging units, remains the most-­visited destination in the isles and the center of the state’s tourism-based economy. But Ko Olina, supported by more West Oahu tourism amenities, has the potential to head in the direction of another Wailea, the high-end resort community in South Maui, according to Kevin Aucello, principal and co-founder of Powell & Aucello, the firm that represented Kam Sang in the deal.

“It’s one of the last few oceanfront entitled parcels in Hawaii, which is extremely rare. It’s in a great resort with beautiful beaches so it’s a very unique opportunity,” Aucello said. “They are still pretty early in the planning phase. They are trying to look at feasibility and running their numbers on what their options are. But everything is on the table, I believe, for our client.”

CBRE, which represented China Oceanwide in the sale, said in a news release that the lot adjacent to Aulani Resort is entitled to up to 1.5 million square feet of developable area and up to 1,400 units.

“The seller had proposed a 1,383-key Atlantis Resort & Residence Ko Olina (subject to design review), which would feature 37,500 square feet of retail, 1,200-seating restaurant options, an aquarium and pools, and opens up to two of Ko Olina’s signature beach lagoons,” CBRE said.

CBRE said the other lot is entitled for up to 990,000 square feet of development and is approved for up to 850 units comprising either hotel, branded residential or timeshare space.

The Cove

Redevelopment of the site known as The Cove marks the first major improvement in over 25 years of a nearly 11-acre site that is adjacent to Ko Olina but in its own coastal resort section. The partnership, Cove Campbell Kobayashi LLC, has published two volumes of a final environmental impact statement for the project, which were accepted Feb. 20 by the Honolulu Department of Planning and Permitting.

The plan calls for replacing existing structures with a new performing arts venue and updated luau. They also plan to create “an authentic Hawaiian community gathering place” with the addition of new restaurants, retail space and cultural/educational programming that “honors history, culture, and connection to place.”

Kevin Penn, president and CEO of the James Campbell Co., said in a statement, “The Cove Redevelopment contributes significantly to the Ko Olina resort area by enhancing its cultural, economic, and community offerings, creating a unique destination for both residents and visitors alike.”

Penn said The Cove will feature cultural performance spaces, restaurants, retail shops and open spaces that reflect the site’s historical and cultural significance.

“This site has a been a place for cultural and commercial activity since the 1970’s and this project is an opportunity to modernize facilities while celebrating the area’s heritage,” he said.

Penn said The Cove is expected to sustain over 400 full-time jobs, contributing to the local economy.

“Overall, we’re excited that The Cove will create a vibrant hub of activity that complements the resort area’s existing amenities,” he said.

The property has been the site of a luau catering to tourists since 1979, initially under a conditional use permit on land zoned for agricultural use. Later, the property was rezoned for commercial use that permits restaurants and retail associated with a “Hawaiian Theme Park” along with the luau and other operations that include weddings.

The site fronting a public beach in a natural cove was once the home of Alice Kamokilaikawai Campbell, daughter of businessman James Campbell, who bought 41,000 acres in West Oahu in 1877 and later leased much of the real estate to sugar cane plantations that were replaced in more recent decades by urban development, including Oahu’s “second city” of Ka­polei and Ko Olina.

Ko Olina’s evolving vision

The vision of nearby Ko Olina, which means “Place of Joy,” has taken shape over the last couple of decades and is still evolving. There are 642 acres in the master-planned resort, which was historically a retreat for Hawaii’s royalty along the Waianae mountain range.

Previous developments within Ko Olina include Aulani, a Disney Resort & Spa with Disney Vacation Club homes; Four Seasons Resort O‘ahu at Ko Olina; Marriott’s Ko Olina Beach Club; and the Beach Villas at Ko Olina vacation residences.

Ko Olina also includes the state’s largest private deep-draft marina along with golf and ocean activities, music, wedding and entertainment venues, and a retail center.

Hannemann said he took a strong interest in Ko Olina during his two terms as Honolulu mayor, when he sought to make Kapolei a secondary urban center.

“I coined the phrase, ‘I don’t want it to be a second city, I want it to be a great city,’” he said. “I think what is happening now is going to fulfill the vision that we’ve wanted to see.”

Oceanwide’s plans for Atlantis were initially announced in late 2016 after the company bought 26 acres of land in front of two human-made lagoons at Ko Olina for $280 million. By 2022, Oceanwide was in financial trouble and trying to generate cash to revive a massive Los Angeles project by selling properties in Hawaii and New York.

Chinese-based property investors faced heightened struggles with overseas projects in 2018 after the Beijing regime restricted international capital flows in 2018, and then in 2021 when China real estate firms were threatened by tighter credit requirements.

Ko Olina development also slowed down with the COVID-19 pandemic.

However, Aucello said, “a lot of that had to do with China Oceanwide having financial challenges in a lot of different markets and being told to reorganize and give up on certain projects. I think that was the thing that slowed things down in Ko Olina (rather) than that there’s not a market for luxury vacation properties. “

He said his California-based clients are “very experienced and very successful in the luxury hotel and branded residential space,” and know Hawaii well.

“Ko Olina does need some additional offerings of things to do — retail and restaurants, things like that,” Aucello said. “The (owners) of The Cove and I suspect (Kam Sang) has plans for its two parcels that will probably provide more of what is needed. I think both of those projects will eventually help it become a full- service resort so that people can stay there for longer periods of time.”

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Star-Advertiser reporter Andrew Gomes contributed to this story.