In the waning hours of daylight, mist gently wraps around the forested hills of Ahualoa on Hawaii island like an ethereal shawl. Thus came the inspiration for the name of Carol Salisbury Culbertson’s inn in that rural district above Honokaa town: Waianuhea, meaning "cool soft fragrance."

Culbertson bought the 7-acre property, which is adjacent to her home, in 1998. "At the time, I was living in Seattle," she recalled, "and my friends, Reed Santos and Craig Tennant, were staying at my house in Ahualoa. They told me the property next door had gone into foreclosure and that there had been an auction but no one showed up to bid on it. I approached the bank and was able to get a good deal for it."

On overgrown pastureland was a five-bedroom, three-bath house which Culbertson initially intended to renovate and use as a residential rental. Then she got the idea of opening it as a hostelry.

With Santos and Tennant as partners, she implemented plans to groom the grounds, transform the workshop into an office and the garage into a storage area, and remodel the existing structure into a four-bedroom, four-bath house. Construction of a free-standing suite and a two-story addition — including a kitchenette, massage room, two half-baths and spacious gathering spaces — followed.

"We started with a very blah house and turned it into something really special," Culbertson said. "Reed, Craig and I are artistically inclined, and we had a lot of fun designing Waianuhea. Instead of renovating the house as economically as possible, we began to see it as a beautiful retreat."

Most of the art on display is from Culbertson’s personal collection and was created by her friends. She bought a few pieces specifically for Waianuhea, including a portrait of Pele, the Hawaiian volcano goddess, by artist Christopher Kaohu Jaeckle, who hails from Ahualoa.

"Pele sits amid burning forest and flowing lava," Culbertson said. "I love the painting because it shows her as both a destroyer and a creator. We have many other pieces by local artists, including glasswork, paintings, sculptures, ceramics and photographs. There’s a lovely watercolor of blue ginger by Madge Tennent that I bought for a song at an auction in Honolulu."

More than 70 colors of paint adorn walls and ceilings in the 5,800-square-foot house. "Craig would stare at spaces for days, at different times, to envision what would work," Culbertson said. "Then he would get swatches of color, tape them on the spaces and observe them for days again to see what they looked like in the changing light. When he had narrowed it down to a few choices, he would ask Reed and me for our opinions, and we would make the final decisions together."

Culbertson bought her partners’ shares in Waianuhea in December 2002, two months after it opened. Operations are based on features she appreciates when she travels: comfortable beds; friendly, attentive service; art and beauty everywhere; access to the Internet, Wi-Fi, phone and TV; and a feeling of ease and informality in luxurious surroundings.

Days begin with hearty breakfasts incorporating fresh local products, including eggs from a neighboring farm and herbs and vegetables from the on-site garden. Think Herb Eggs with Sweet Potato Hash Browns, Lilikoi Cream Cheese Sweet Bread French Toast and Apple Banana-Stuffed PanCrepes topped with Candied Coconut and Macadamia Nuts.

Menus change daily, and no breakfast is repeated during guests’ stay. Randy Goff, Waianuhea’s manager, has a culinary degree and looks forward to her stints in the kitchen four mornings a week.

At sunset, guests gather in the living room for a complimentary wine-and-pupu tasting hour. Ocean views, fresh floral arrangements and a lava rock fireplace make it a fabulous setting for socializing. Use of bicycles, board games, books about Hawaii and hundreds of DVD movies is also offered free of charge.

In the kitchenette, items ranging from Popsicles, trail mix and candy bars to pasta, pizza and chicken potpies are available around the clock. Payment is made on the honor system.

Chairs and couches set on manicured lawns are perfect spots for reading and reflection. During strolls around the tree-lined property, guests are welcome to pluck bananas, avocados, oranges, guavas and grapefruit for snacks.

Waianuhea is a place to get away from it all and still enjoy the amenities that make for a memorable vacation. It’s the epitome of country elegance, Hawaii style.