Maui

Full List of Hotel Zoned Condo Short-Term Vacation Rentals on Maui

Hawaii’s independent vacation rental industry has undergone drastic changes in recent years and the August 8, 2023 West Maui Wildfires have even further increased the level of scrutiny on this important local industry. Vacation Rentals properties are not without their negative impacts nor is any sort of development, however, it is my personal opinion as someone born and raised on the island of Maui that they are crucial to our over all well being. I touch on a few specifics here in a previous post: Legal Vacation Rentals Are Crucial to Maui’s Vitality as a Whole.

With this being said, Maui County as well as many other counties around the state are facing an epidemic of affordable housing. I am huge proponent of Affordable Housing and I believe that it should be the #1 objective for our State, individual Counties, and various departments to get real about and start creating the tens of thousands of homes that we need. It is paramount to note that taxes generated from legal short-term vacation rental properties in Maui County, are by far the #1 Funding Source for the Maui County Affordable Housing Fund with almost $40 million generated in the last couple of years.

The Hawaii Legislature is considering two bills related to short-term rentals: Senate Bill 2919 and House Bill 1838 would allow counties to effectively ban legal short-term property rentals. It is bills like these that have inspired the contents and positions that I assert in this post. The Honolulu Star Advertiser just recently published an article authored by Julie Meier who is the Hawaii Association of Realtors 2024 State President regarding this and the article can be found here.

In this blog post, I hope to clear up some facts, figures, and distinctions about various vacation rental asset classes and share my assertion that Hotel Zone vacation rental properties are likely the most safeguarded asset class to continue their current permitted use. Further down in this post, I cover the various hotel zoned vacation rental buildings in Maui. If you would like to receive a list of currently listed Hotel Zoned Properties for Sale in Maui, please reach out and I will make it happen.

Each of the individual counties in the State of Hawaii has their own set of rules and regulations pertaining to vacation rentals. Kauai island is probably the most straightforward and easiest to understand. Maui is probably the second most straight forward and with long established rules. Oahu has just undergone some major changes and Hawaii Island is currently in the process of doing so.

It is estimated by the County of Maui that there are currently approximately 16,000 legally operating vacation rental properties on Maui in total.

Despite wide spread mis-information, it is my opinion that there are very few vacation rental properties on Maui operating illegally. I do believe that those properties that continue to operate illegally are higher-end homes that have private client networks who chose to rent them and/or hidden property booking websites. Both AirBnB and VRBO/Expedia which are by far the largest booking sites for said properties, now require TMK numbers and GET/TAT numbers to be published on their websites as well as additional required input in the back-end of their systems to ensure that they are legal vacation rentals.

Vacation rentals are in almost all instances locally operated and is estimated that the industry on Maui alone generates roughly 18,000 jobs at an average pay of $39 per hour. This capital is generated here and spreads throughout our locally throughout many other small local businesses rather than being shipped off over sees to London, Hong Kong, New York or wherever it may be.  My team and I are currently one of these operators with roughly $100M in assets in management where we directly employ dozens of hard working Maui locals and indirectly help support many more local businesses.

sold by jeremy stice

I recently assisted a client of mine selling two Hotel zoned vacation rental properties at Honua Kai in Kaanapali and purchasing a Hotel Zoned Vacation rental condo Hoolei Residence #23-3 in Wailea by means of a Reverse 1031 Exchange. Our team now operates this legal vacation rental property in our portfolio and the booking site for said property can be found here- Hoolei 23-3 Vacation Rental Site.

Maui’s Different Classifications of Vacation Rentals

Legal residential home vacation rentals

It is important to distinguish that there are different classes of legal vacation rental properties in Maui County. For residential homes, either a STR or TVR license is required to operate a legal vacation rental. There are some residential lots in Maui County that are zoned Hotel which makes the processing of these permits much more expeditious and I believe that these licenses transfer upon a change in ownership ( a sale) but non-hotel zoned properties that have these licenses do not transfer upon sales. Furthermore, I have heard whispers that there may be changes to STR and TVR permits that may soon require an owner to live on the subject property and operate the business which is the current premise of our Bed and Breakfast license.  There are only a couple hundred of these homes on the entire island and they are mainly multi, multi, million dollar properties that would never be affordable regardless of their ability to short term rent. The initial requirements are quite rigorous and require applicants to make public notice within certain distance of their neighboring properties. Adjoining neighbors have the right to voice their opposition and if said opposition is too vehement, it is unlikely that said permit will be granted.

who pays for mauis affordable housing chart

Bed and Breakfast Properties

B&B properties are legal vacation rental residential homes in which the basis of the permit is that a legal registered owner of the property is required to live on the property itself and also be the operator of record for the vacation rental property. There are caps for each geographic region that the County has allocated. On Maui island, there are currently 145 registered B&B properties and remaining capacity at roughly 246 properties spread out throughout the island. It is noteworthy, that although the requirements are not as stringent as STR properties, they are still very substantial and due require notice to adjoining properties as well. Currently, where I live in Kaanapali Coffee Farms in West Maui- there is 1 permitted short term vacation rental home in a neighborhood of 51 lots and there were 2 other owners who applied for permits but were denied due to strong opposition of neighboring properties.

kapalua bay villas vacation rental for sale

One of my current exclusive listings is Kapalua Bay Villas #12G4 is a legal vacation rental property that I currently have listed and appears on the Minatoya List. This beautiful 1bd/1ba. full ocean view condo is currently listed for $1.439M and all listing details can be found here.

Apartment or Residential Zoned Condos “The Minatoya List”

There are roughly 8,000+ condo properties on Maui that are either zoned one of the apartment classifications or residential classifications that the County currently has but are legal vacation rentals codified into current Maui County code. The vast majority of these properties were originally designed as transient rental properties back in the 70s and 80s. However, there are also a number of these properties that were built as part of workforce housing projects in order to fulfil the development projects for specific hotels that were built on Maui. I don’t know which properties specifically fall into this classification and if anyone has more information on this front, I would love to see the details.

Link to the Maui County published Short Term Rental List here. This list contains properties of various different Zoning classifications including those that are zoned Hotel (albeit not all of the Hotel zoned condos). The ones that should be considered Minatoya are zoned either Apartment (A1 or A2) or Residential (R1, R2,R3). I know it needs some serious interpretation to be able to understand this properly lol.

In the Stice Team of Hawaii Life Vacations portfolio, roughly half of our current inventory falls into this property classification whereas the other half is zoned Hotel.

Disclaimer: an actual zoning report from the County of Maui is part of the mandatory Seller’s Real Property Disclosure and this is the information that buyers should most heavily rely on. 

honua kai

Another listing of mine is Honua Kai Konea #239 is Hotel Zoned vacation rental in one of West Maui’s premiere vacation rental complexes. This 2bd.2/ba has a unique and incredible floorplan with a beautiful ocean view, check out all listing details here.

Hotel Zoned Vacation Rental Properties

It is my personal opinion that hotel lobbying power has made a concerted effort over the years to consistently attack the legal vacation rental industry in the state of Hawaii and they have done it by means of direct legislative lobbying endeavors, infusing the public and local media with ridiculously inaccurate information to further their endeavors. Vacation rental properties are a direct threat to their business models and long term sustainability. In my opinion, where this becomes a benefit to Hotel Zoned Short Term Vacation rental properties is that West Maui properties like Honua Kai, Mahana, The Whaler, the Alii, Kaanapali Shores etc fall into the same zoning classifications as the Westin, the Hyatt, the Sheraton etc. and properties like Hoolei, Wailea Beach Villas, Mana Kai etc. are zoned the same as the Andaz, the Grand Wailea, the Four Seasons, etc. If the County of Maui or State of Hawaii wants to attack Hotel Zoned Vacation Rental Properties by means of invalidating their State Zoning on what basis can they do so without posing the same direct threat to the hotels? When 30% of Hawaii’s hotels are now owned by multi-billion dollar private equity funds, do you really think they would take up this battle? Private Equity Owns a Big Chunk of Hawai‘i’s Hotels. Here’s Why That Matters.

The biggest difference is that these hotel companies are very much aligned with each others in many ways and are owned in many times by the same parent corporations (see link above) and thus have massive lobbying power and overall influence. Individually owned vacation rental properties are basically a cluster f*** of tens of thousands of different owners that are really only aligned through entities like the MVRA and HIMAST which are gaining traction but need massive assistance.

Properties like Aston Kaanapali Shores or Aston Mahana s are not actually owned by the Aston Corp itself but their front desk areas may be and certainly are operated by the Aston Corp. as part of the front desk rental programs. From a lending standpoint, these properties are referred to as CondoTel properties and have more rigorous financing requirements that I touch on here in a past blog post. Purchase a Hawaii Condo-Tel Property with as Little as 20% Down PaymentAlso noteworthy that in this past blog post where I discuss 3 Ways to Rent & Optimize Your Hawaii Vacation Rental Property.

ocean view mahana 811 condo

I also have listed Mahana #811- a panoramic ocean view corner residence 2bd/2ba Hotel Zoned vacation rental property, all listing details can be found here. The seller of this property has very succesfully operated their vacation rental operation on their own during their ownership tenure with absolutely fantastic rental income returns. Read about how to Earn a part time job in Hawaii by Purchasing a Vacation Rental Property 

Disclaimer: an actual zoning report from the County of Maui is part of the mandatory Seller’s Real Property Disclosure and this is the information that buyers should most heavily rely on. 

West Maui Hotel Zoned Vacation Rental Properties

For all of the properties that list below, I have linked to a few of them that individually appear on our site but due to coding issues that are out of my control, not all of the buildings link properly nor do all of the active listings. For an accurate up to date list, please do reach out to me directly. 

Lahaina Town

  • Lahaina Shores – this property is located in the burn zone in Lahaina and is currently inoperable.
  • Aina Nalu- was located in the burn zone and itself completely burned down. 

Kaanapali

Honokowai

There are lots of vacation rental properties here but none of them are zoned hotel. The vast majority of these condos appear on the Minatoya list.

royal kahana vacation rental properties for sale

Our team is currently representing 4 different Hotel Zoned vacation rentals at the Royal Kahana- two 2 bedroom oceanfront condos #610 and #1010 and two oceanview 1 bedroom condos #213 and #308.

Kahana

  • Sands of Kahana
  • Valley Isle Resort
  • Royal Kahana
  • Hololani
  • Pohailani (only oceanfront portion)- Pohailani has split zoning between the project. The properties that are on the ocean side of the lower road are zoned Hotel whereas the ones on the mauka side of the road are not. 

Napili

  • Honokeana Cove
  • Napili Point
  • Napili Ridge
  • Napili Shores
  • Napili Surf
  • Napili Bay
  • Hale Napili
  • Puna Point
  • Napili Lani
  • Residences at Napili Bay
  • Napili Ridge

Kapalua 

Central Maui (including Maalaea) Hotel Zoned Vacation Rental Properties 

There are about 10 vacation rental complexes in Maalaea but none of them are zoned Hotel.

North Shore Hotel Zoned Vacation Rental Properties 

Kuau Plaza is the only short term vacation rental condo complex on the North Shore but it is zoned apartment.

South Maui Hotel Zoned Vacation Rental Properties 

Our site is not properly set up to display each of these buildings in Kihei, so again please reach out and I will get you individual active listings for sale. 

North Kihei

  • Kealia
  • Sugar Beach Resort
  • Nani Kai Hale
  • Kihei Kai
  • Maalaea Surf
  • Kihei Beach Resort
  • Koa Lagoon
  • Menehune Shores
  • Kihei Holliday

Central Kihei

  • Kamaole Nalu
  • Hale Pau Hana
  • Kihei Ali’i Kai
  • Royal Mauian

South Kihei

  • Kihei Surfside
  • Mana Kai
  • Hale Hui Kai

Wailea 

Makena

Mahalo for Your Consideration

Mahalo for taking the time to read my article here. While sharing the positive aspects about legal vacation rentals here in Maui, I realize that the system is far from perfect and constant input and improvement is imperative. I invite to share your thoughts below in a constructive and polite manner.

Work with a True Vacation Rental Specialist

  • Licensed since 2006 at age 23; Third Generation Realtor
  • Top Selling Broker in the Entire State of Hawaii age 40 or under.
  • $70M Sold in last two years and a very consistent track record of vacation rental condo sales.
  • Born and raised on Maui; Seabury Hall and Babson College educated.
  • Honua Kai and Kaanapali Shores Homeowner Investor and Ka’anapali Coffee Farm property owner.
  • Facts. Analysis. Performance.
  • Expert negotiator and astute contractual knowledge.
  • Comprehensive pricing Analysis- more valuable/insightful than an Appraisal.
  • Complimentary In-house design and staging services by Laura Lancaster of WIBU Interior Designs.
  • Commitment to stellar “white glove“ services.
  • Driven, Knowledgeable, assertive, determined, and fun to work with.
  • Solution-oriented and able to navigate very challenging issues.
  • Listens well and has strong communication skills.
  • Introduced and established Hawaii Life Real Estate Brokers, Hawaii’s Top Real Estate Firm to Maui in 2009.

My wife and I have owned an investment property at Honua Kai since 2014, we just purchased our second at Kaanapali Shores in 2023, I have represented countless buyers and sellers on Vacation Rental Properties in Hawaii, and we operate a top-performing vacation rental program operating within numerous resorts in Maui.

Jeremy Stice R(B) at Your Service

As the director of Hawaii Life’s West Maui Vacation Rental portfolio and one of Hawaii Life’s top-selling Brokers, my team and I are here at your service. I was born and raised here in Maui, am a third-generation Realtor, and my wife and I have called West Maui home since 2010-we enjoy sharing our passion for it with all who are interested. I make a commitment to pick up my cell phone as best as I can, return voicemails, text messages, and email in a timely fashion. I also work 7 days a week so feel free to call me anytime you need me. I am here at your service, I look forward to sharing my passion and expertise with you. Want to follow my blog via email updates? Please enter it below. This will not be used for any other reason than automatic blog updates that I post. Subscribe to the Jeremy Stice Blog Roll Here.

You might also be interested in these past articles:

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Royal Mauian

May 3, 2024

Aloha. Just a correction for your list of hotel zoned condos in your recent article — Royal Mauian is in Central Kihei, not North Kihei, using your vernacular. We are right next door to Kamaole Nalu and Hale Pau Hana that you list as “Central Kihei” and miles from the complexes you list as “North Kihei”. Mahalo. Royal Mauian AOAO Board of Directors

Jeremy Stice

May 3, 2024

@Royal Mauian, you are absolutely correct and mahalo for the note here. The post has been revised accordingly.

Jeremy Stice

May 16, 2024

Thank you, this has been corrected.

Todd

May 3, 2024

Jeremy, Great article. Do you think the price of Hotel zoned condo are going to increase if the Mayor’s plan goes through. Thanks Todd

Jeremy Stice

May 16, 2024

Aloha Todd,

I believe that all of the economics there are aligned for Hotel Zoned condos to increase in value.

Carol Von Tempsky

May 4, 2024

Jeremy-
Mahalo Nui for sharing your most comprehensive & informative blog on this new Maui situation! Well done & best information & links out there!
I renovated ($$$) my S Maui condo that has been in our family for 33 years & entered TVR status .
When I look at the income taxes & property taxes that I as one small rental have paid, I have to wonder how our state & county economy will survive or thrive ! Being resident owner, all my earnings are spent here on Maui , where out of state multiple property owners are not spending their earnings here. It’s a weak band-aid fix for our Lahaina community , who eventually will want their homes back, not a condo.
Shutting down all STRs will cause higher un-employment, lack of funding to our affordable housing projects for residents in need and will put our whole island in an economic tail-spin.
Jeremy- thanks for listening, wish you a family well & keep me in your informative loop!🤙🏼

Jeremy Stice

May 16, 2024

Aloha Carol,

It’s so great to hear from you. You nailed it with a “weak band-fix.” Looking forward to seeing you submit your testimony!

Tracy S Stice

May 4, 2024

This blog is chock full of very useful information. Anybody considering a purchase in a short term rental of any sort should read this blog and all of the linked blogs. Great research Jeremy! It makes me proud to call you my son, the Realtor, as you have taken the job to the next level of becoming a true expert and your writing and research shows how much work you put into the job.

Jeremy Stice

May 16, 2024

Thanks Pop! Appreciate the good vibes 🙂

Laura Cavanaugh

May 13, 2024

Oh Jeremy, I am trying to make sense of this whole thing since so many rumors are spreading around this bill being passed etc, your blog post does clarify many things, thanks for taking the time to write it. It really is quite a mess. If all the STR go back to being LTR lots of jobs go away too, so no more work force people needing a place to live. This is going to take a long time to sort out in my opinion. I wish instead there was some sort of talk about a new road into Lahaina so then people could actually live in Wailuku or Kahului and drive to work on the Westside in a reasonable amount of time. I hope it works out the best for everyone.

Jeremy Stice

May 16, 2024

Aloha Laura,

Mahalo for taking the time to read and to share your input. I completely agree with your points here. An improved highway to West Maui would be wonderful but we are talking many Billions of $$$. How would we pay for that? I was just on Oahu and the roads are so different there (very direct), not that I agree with drilling right through gorgeous parts of beautiful mountains to do so but I think the biggest difference there is the federal funding influx from what I believe must be due to the military presence.

Kaybee

May 16, 2024

It is interesting to see your graphs showing increased revenue in 2024 when we on the other islands keep hearing that Maui visitor arrivals have decreased since the fires. Are your graphs projections instead of real numbers?

Jeremy Stice

May 16, 2024

Aloha Kaybee, Mahalo for taking the time to read here. That’s a great point that you illuminate. We are seeing drastically reduced arrivals and dollars spent in vacation rental numbers in 2024. Nevertheless, the graphs that are referenced in these posts are based off of property tax assessed values and rates for vacation rentals which have no correlation to guest paid stays in said properties. With this, I believe that the revenue referenced was based on 2023 rates which were significantly lower than what they will be in 2024. The County is raising the property taxes to much higher levels this year. So, the numbers and overall contribution to the affordable housing fund and County itself should be even higher. It will be interesting to see what the 2025 overall contribution and rates look like. Please let me know if I didn’t properly address your question. Mahalo!

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