The Department of Land and Natural Resources announced the last phase of the demolition of the iconic Uncle Billy’s Hilo Bay Hotel started this week, with completion expected in January 2026. This phase will prepare the four-acre site for future use, allowing for the revitalization of the Waiakea Peninsula.
[Note: Scroll to the end to see before-and-after photos of the now-demolished hotel.]
During the first phase of demolition, the county’s contractor, Isemoto Contracting, completed the removal of all aboveground structures in December 2024. The County also awarded Isemoto Contracting with the general contract for the second and final phase of demolition, which is estimated to cost $4.7 million. The final phase includes preparing the site at the ground level and below, including the removal of soil affected by pesticides, the extraction of underground utilities, surface grading of the entire site and putting in topsoil and grass.
Built-in the mid-1960s, Uncle Billy’s was a family-owned-and-operated hotel. Hawaii County condemned the dilapidated hotel following its closure in 2017, citing health concerns and public safety. After that, law enforcement agencies conducted multiple sweeps at the former hotel on Banyan Street or patrolled the surrounding area, citing trespassers. The demolition of the building was delayed by the discovery of asbestos, which required securing material disposal certificates. Demolition work finally began at the end of 2023.
Currently, the Hawaii Community Development Authority is working on a broader Waiakea Peninsula revitalization effort, which will also determine the future use of the former site of Uncle Billy’s. The new plan will include an updated strategic assessment of the Banyan Drive area to facilitate redevelopment, while also working to preserve its natural beauty and cultural significance.
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