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Downtown Kona’s Next Chapter: Restaurant Group Acquires Two Aliʻi Drive Restaurants

In a Big Island Now report, Nakoa Pabre, owner of Umeke's Fish Market Bar & Grill, described the plan as "Being a better steward of our land, being better role models in our community." The plan is part of a March 2026 decision by three longtime Kona restaurant owners to pool their businesses, purchase two historic buildings on Kailua Bay, and bring more activity to downtown Kona.

These developments are two parts of downtown Kona's story. This September, Alii Drive gets its biggest crowd of the year for the Queen Liliʻuokalani Canoe Race. A few blocks away, storefronts sit empty in a shopping village built on the bones of the island's first luxury hotel, while the county's parking-rate plan remained unresolved amid legal pushback. Both things are true at once, and understanding why tells you more about where downtown Kona is headed than either fact alone.

Five Days on the Water, Confirmed for September 3 Through 7

Kai ʻŌpua Canoe Club has hosted the Queen Liliʻuokalani Long Distance Canoe Race every Labor Day weekend since 1972, and the 2026 edition continues that tradition. Roughly 2,500 paddlers travel in from Australia, New Zealand, Japan, Hong Kong, the mainland, and Canada to race in and around Kailua Bay, which is what earns it the title organizers use: the world's largest long-distance outrigger canoe race.

The schedule spreads across the full Labor Day weekend, not just Saturday. In a typical year it runs like this, though exact heat times shift and are worth confirming closer to the date:

Day What's on the Water Where to Watch Free
Thu, Sep 3 Warm-up heats, shorter races Aliʻi Drive, Kailua Pier
Fri, Sep 4 Sprint and iron events Kailua Bay waterfront
Sat, Sep 5 The marquee 18-mile long-distance race to Hōnaunau Huliheʻe Palace grounds, Kailua Pier
Sun, Sep 6 Double-hull, OC1, OC2, and SUP divisions Kamakahonu Beach
Mon, Sep 7 Kupuna Classic, paddlers 50 and older Kamakahonu Beach

No ticket is required for any of it. The races start and finish at Kamakahonu Beach, the small protected cove next to Kailua Pier, and the grounds of Huliheʻe Palace along Aliʻi Drive give front-row views of the same water without paying for anything but a parking spot.

That last part is where it gets complicated.

Downtown Parking Remains Unresolved

Kona's parking problem is not new, but it is not settled either. In April 2025, Mayor Kimo Alameda announced a 90-day trial, starting May 1 of that year, converting the northbound lane of Aliʻi Drive between Kailua Pier and Hualālai Road into roughly 50 free street parking stalls, with the road running one-way southbound. Alameda framed it as a test, something the county would make permanent if it worked. Ross Wilson, executive director of the Kailua Village Business Improvement District, called the 90 days a reasonable window to see whether traffic signals at Kuakini Highway's intersections with Palani and Hualālai Roads could get synchronized well enough to keep the new pattern from creating a bottleneck.

More than a year later, the underlying pricing problem is still on the table. As of that April 2025 report, paid public parking along the same strip ran from $12 to $21 an hour. By May 2026, a Hoodline report on the ongoing squeeze confirmed that a county ordinance meant to cap those rates had been shelved amid legal pushback. Julie Ziemelis, who founded the Fix Paid Parking in Kona Facebook group to keep the conversation alive, has been pushing the issue in public for more than a year. The free street parking from the 2025 trial still exists. The rate cap that was supposed to address the private lots around it does not.

For someone planning to walk down for Saturday's long-distance race, the practical takeaway matches what other race-weekend guides have already found. The municipal lot at Hualālai and Kuakini fills earliest, so arriving before the morning start and walking a few blocks from the south end of Aliʻi is the more comfortable plan than circling for a spot near the pier.

What the Empty Storefronts Have to Do With Any of This

Kona Inn Shopping Village sits at the center of that same strip, built on the site of the Kona Inn, the 20-room hotel that opened in 1928 and effectively started commercial tourism in Kona. The hotel stopped housing overnight guests in 1976 and the property became a shopping village in 1980. For decades that transition worked. Lately it has been showing its age, with visitor accounts describing storefronts sitting vacant next to the boutiques and galleries that remain.

That is the context for downtown parking discussions. Vacant storefronts and premium hourly rates are part of the setting along this stretch; the restaurant group's investment may offer a new draw.

Three Restaurant Families Bought the Two Most Historic Buildings on the Bay

That is where the Hawaiʻi Island Restaurant Group comes in, as Big Island Now reported. Jackie Rey's, Harbor House, and Umeke's Fish Market Bar & Grill have each served surf-and-turf meals in Kailua-Kona for decades. Harbor House has operated at Honokohau Harbor for about 25 years. In March 2026 the three joined forces to pool resources, create quality jobs, and give back to the community, and the group now employs roughly 300 people across its restaurants.

Within weeks of forming, the group expanded its portfolio by purchasing Kona Inn Restaurant and Kona Canoe Club, both on Aliʻi Drive. Kona Inn Restaurant sits inside the former hotel property and looks out over the same bay, from the Kamakahonu Historical Landmark at King Kamehameha's Kona Beach Hotel to the Royal Kona Resort. Kona Canoe Club, once a sports bar owned by former Los Angeles Dodgers pitcher Don Drysdale, sits right along the breaking shoreline.

Pabre grew up in Kona and remembers looking forward to trips downtown to the old Kona Inn lawn, where events used to happen, and to the Fun Factory arcade that once anchored the same shopping center. That memory is doing real work in how the group talks about its plans. Pabre told Big Island Now that the group was "coming up with creative ways to bring life back to the whole shopping center," not just running two more restaurants under a shared banner.

How the Restaurant Group's Investment Could Add to Downtown Activity

The county's parking work has included a traffic trial and a proposed rate cap; the ordinance was shelved amid legal pushback, and a Facebook group has kept the issue in public view. Separately, the restaurant group owns two recognizable spaces along Aliʻi Drive.

That does not solve the parking rate problem. A visitor or a local still pays whatever the private lots charge to park near the pier. But it does address the other half of the equation, the half that decides whether people bother to park there at all. A revived Kona Inn Restaurant and a Kona Canoe Club under local, hospitality-minded ownership could give downtown another reason to draw people in.

What to Watch For If You Live Here

If you're already in Kona, the next several days give you a chance to see this play out firsthand. Head down for any part of the September 3 through 7 race weekend and you'll see the crowd downtown can still draw when there's something worth showing up for. Then take a slower walk through Kona Inn Shopping Village in the months after and watch which storefronts start filling back in under the restaurant group's ownership versus which stay dark. That gap will help show where downtown Kona is actually headed as the restaurant group's plans take shape.

If you're weighing what it means to own property near a waterfront this actively in motion, whether that's a condo a few blocks off Aliʻi or a home further up toward Kuakini, Hawaii Development Group can walk you through what these kinds of shifts tend to mean for value and livability on this stretch of the coast. Schedule a Private Consultation with Kekoa Akana to talk through it.

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