Council advances 400-foot Ala Moana hotel project amid affordable housing concerns

Oct 12, 2026

Honolulu has cleared the way for a huge new tower complex next to Ala Moana Center, good news for builders and job seekers but a disappointment to housing advocates who say local families get too little out of it.

  • The City Council unanimously approved a permit for a 38-story hotel and a 17-story residential building where the Macy's parking garage now sits.
  • Developer Black Sand Capital is offering 69 affordable units on the site, plus thousands of construction jobs and new tax money for the city.
  • Critics say the handful of extra affordable units beyond what is required is not enough, and the rents being allowed are still out of reach for working families.
  • The fight centers on what the developer gives back in exchange for valuable zoning exemptions.

Outlook: The project now moves into formal city permitting, with pressure building for more affordable units before ground is broken.

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