Hilo Planning Commission recommends permit to rebuild Wild Ginger Hotel

A Step Toward Recovery at 100 Puueo St.

More than a year after a devastating fire claimed the life of a resident and reduced a century-old Hilo landmark to a charred shell, the future of the Wild Ginger Hotel is finally beginning to take shape. On Wednesday, the Windward Planning Commission voted 5-0 to recommend approval of a permit that would allow the property’s current owners to move forward with a $10 million to $12.5 million reconstruction project, according to the Hawaii Tribune-Herald.

The decision marks a significant milestone for BHG Aloha LLC, the firm that purchased the 1.6-acre site for $3.4 million in July 2024. The proposed development aims to replace the irreparable ruins of the original 1911 structure with a modern, 30-room boutique inn. For the local community, the progress offers a path to closing a painful chapter that began on October 22, 2025, when a fire destroyed 95% of the historic building and resulted in the death of 66-year-old resident Gerald O’Grady.

The Path to Rebuilding

The commission’s favorable recommendation for a Special Management Area Use Permit clears a major bureaucratic hurdle, though the project still requires final approval from the Hawaii County Council. If granted, the owners anticipate a multi-year timeline to bring the hotel back to life. Planning consultant Daryn Arai, representing the owners, emphasized that the family behind BHG Aloha—Surinderjeet Singh and his relatives—are hospitality operators rather than traditional developers, a distinction he noted during the commission proceedings to explain the challenges they faced in navigating the complexities of insurance, mortgage, and site remediation.

The proposed site plan is extensive. It includes:

Three two-story guest buildings, each housing 10 rooms.
A standalone front-desk building.
A 1,395-square-foot café.
A swimming pool with a 4,120-square-foot deck and lounge area.
A 32-stall paved parking lot.

To ensure the project respects the sensitivity of the area, the commission added a condition requiring an archaeologist to be present during ground-disturbing activities. This safeguard is intended to protect potential cultural resources or human remains, a requirement that BHG Aloha has formally accepted.

Addressing Neighborhood Concerns

The road to this week’s vote was not without friction. Earlier in the month, the commission had deferred the matter, and several parties had expressed interest in challenging the development. Among the concerns were the potential for construction-related disruption and the long-term safety of the site.

Hilo Planning Commission recommends permit to rebuild Wild Ginger Hotel — Photo: staradvertiser.com

A primary point of contention involved the presence of invasive albizia trees on the property. Hank Correa, a local developer and neighbor, had previously filed for a contested case hearing, citing the danger these trees posed to his nearby apartment building. According to the Star-Advertiser, Correa withdrew his opposition after the owners agreed to clear the hazardous vegetation. This clearing work is already underway, supported by a permit issued in late July that also covers the demolition of the remaining fire-damaged debris and mandates environmental protections for the neighboring Waipilopilo Stream.

The applicant anticipates the hotel could be operational within approximately five years of SMA use permit approval.

The commission also addressed an attempt by the Pacific Resource Partnership (PRP) to intervene in the process. The commission voted 5-0 to deny the organization standing, siding with County Planning Director Jeff Darrow, who argued that PRP’s concerns regarding a “clean and healthful environment” did not constitute a specific, tangible injury distinct from the interests of the general public.

Economic and Community Stakes

The project represents a substantial reinvestment in Hilo’s boutique hospitality sector. By moving from a state of total loss to a planned $12 million complex, the owners are attempting to restore a property that has sat as a painful reminder of the 2025 tragedy for over a year. While the Hawaii Fire Department has listed the cause of the fire as “undetermined,” they have noted that investigators do not suspect foul play, allowing the owners to pivot toward reconstruction.

1 dead after fire destroys Hilo’s Wild Ginger Hotel

The transition from a burned-out shell to an operational hotel will be a slow process. With construction expected to start within two years of receiving the necessary permits, the site will remain a focus of local planning oversight for the foreseeable future. For now, the owners have moved past the initial legal and environmental roadblocks, setting the stage for the County Council to have the final say on whether the historic Puueo Street address will once again welcome guests.