"Sheraton Keauhou is now an important part of the Big Island's economic engine employing nearly 350 staff and management," said general manager Charldon Thomas. "We look forward to a long relationship with our island community and express appreciation to all those who have helped us achieve this milestone."

The resort — managed by Starwood Hotels & Resorts under the Sheraton brand — is the second hotel in the 2,400-acre Keauhou Resort area, which includes the Outrigger Keauhou Beach Resort, the Keauhou Shopping Center, two golf courses, timeshare, residential and resort condominiums and single-family residences.

Features at the resort include a pool with a 200-foot-long slide, a wedding chapel, a spa and fitness center and the adjacent Keauhou Convention Center.

The property has gone through some major changes.

The Kona Surf opened in 1971 as a four-star property but had deteriorated by the time its owners, Tokyo-based Otaka Inc., shut it down in June 2000. Otaka, which bought the hotel in 1986, had said the hotel lost more than $3 million annually since 1991.

Koa Hotel LLC, a joint-venture by California investment firm Arlen Capital LLC and New York real estate investment and development company Brickman Associates, bought the hotel at a foreclosure sale. Kamehameha Schools owns the land.