Maui, Hawaii, is at a crossroads. Thousands of short-term rentals are set to be banned as county leaders move to address the island’s growing housing crisis. Yet at the same time, new hotel projects in Kihei and other resort areas are moving forward, raising questions about who really benefits from the changes. For hosts, residents, and travelers alike, this clash between vacation rental restrictions and hotel expansion could redefine not only your options but the future of Maui’s entire tourism economy.

Phase-Out vs. Build-Up: The STR Paradox in Maui

Maui County’s Housing and Land Use Committee has approved Bill 9, a major proposal that will phase out nearly 2,000 short-term rentals in apartment districts by 2028, with a full countywide vacation rental ban planned by 2030 (AP News, Honolulu Civil Beat). This sweeping crackdown on Maui short-term rentals signals one of the most aggressive housing policies in Hawaii. At the same time, new hotel development in Kihei continues to expand, including a 142-room Hilton Suites project by Regency Namakua and a 220-room dual-branded Hilton property. While vacation rental owners face elimination, Maui hotels are still growing, creating uncertainty for hosts, residents, and travelers about the future balance between tourism and housing on Maui, Hawaii.

Mixed Messages, Meaningful Impact

On one hand, STR owners face shuttered listings and lost income; on the other, hotel developers proceed unabated. University of Hawaiʻi economists estimate that converting STRs will add roughly 6,100 units to long-term housing (a 13% increase), but could also cause a $60M annual loss in property taxes, a 4% GDP contraction, 15% drop in tourism spending, and nearly 1,900 job losses.

What’s Happening & What’s Next

     Bill 9 Short-Term Rental Phase-Out

• Maui County has passed Bill 9, which will phase out roughly 2,000 short-term rentals in apartment zones. The first wave of closures will hit West Maui by 2028, with the rest of the island following by 2030. Short-term rentals currently make up about 21% of Maui’s total housing stock, far higher than most regions in Hawaii or on the mainland. Critics argue this has contributed to rising rents and limited housing for local residents.
• To soften the impact, the county has introduced a three-year amortization period, which gives some owners a chance to recoup costs or even apply for rezoning as hotels. However, for most hosts, this phase-out represents a hard stop that will fundamentally reshape Maui’s short-term rental market.

      Kihei Hotel Developments

• Even as vacation rentals face elimination, large hotel projects in Kihei are moving forward. Regency Namakua has proposed a 142-room Hilton Suites on land zoned before 2016. This project still needs a county Use Determination before breaking ground. Meanwhile, Lipoa Investments is advancing a 220-room dual-branded Hilton property that does not require further approvals. That project is already moving quickly and is expected to open by late 2026. These hotel approvals highlight a growing divide: while short-term rental owners are being phased out, corporate hotel projects continue to expand.

     Original Tech Park Vision Undermined

• The location for these new hotels is part of the Kihei Research & Technology Park, which was originally envisioned as a hub for science, research, and economic diversification beyond tourism. Early plans even suggested a small inn for visiting researchers, not large-scale resorts. With two Hilton-branded hotels now in the pipeline, critics say the park’s original purpose has been overshadowed by tourism development, raising questions about whether Maui is truly diversifying its economy or doubling down on hotels as STRs disappear.

Action Steps for Stakeholders

• Hosts:
  • Prepare for long-term plans: consider rezoning, diversify listings, factor amortization timelines.
  • Engage in local meetings or testimony, although STR bans remain politically sensitive.
• Residents & Advocates:
  • Demand clarity on housing development timelines and protections for displaced families.
  • Push for meaningful affordable housing, not just tourism-serving projects.
• Travelers:
  • Expect fewer vacation rentals and more inland hotel options post-2026, which will likely still be at premium prices
  • Consider supporting “regenerative tourism” and cultural experiences on the island, which means choosing experiences that help the island and its community.

Is Maui Choosing Hotels Over Homes?

Bill 9 and the hotel approvals expose a fundamental tension, eliminating tourism's footprint should free up housing but new hotels may simply replace that lost footprint. Without significant investment in long-term residential developments, the local housing crisis may deepen, and tourism-driven inequality could solidify.

Want to stay informed or support responsible hosting in Maui?

• Follow Lodge Compliance: for the latest updates on Maui’s short-term rental ban, new hotel projects, and hosting rules.
• Join the conversation: attend council forums, submit public testimony, or contact your local representative before the final vote.

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