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The Honolulu Advertiser
Updated at 5:47 p.m., Thursday, January 15, 2009

Ilikai lender moves to shut down hotel as of Feb. 8

Advertiser Staff

The lender for the embattled Ilikai hotel in Waikiki said it will stop paying operational expenses, prompting a move to close hotel operations as of Feb. 8, according to documents filed in state Circuit Court.

It is the latest action linked to foreclosure proceedings against developer Brian Anderson and his Anekona Development Group, which bought into the project in 2006 with big plans to renovate.

"Anekona will use every legal means available to us to fight to keep the Ilikai open," Anderson said yesterday.

The Ilikai was built in 1964 by businessman Chinn Ho as part residential condo, part hotel and gained pop-culture icon status as part of the opening scenes of the long-running TV series Hawaii Five-0.

But in recent decades, the property has been showing its age and some of the problems that come with having a succession of owners with different priorities.

The court appointed hotel analyst Joseph Toy as receiver on Oct. 29. Toy said the lender's notice left him no choice but to move to shut down the hotel.

"I really don't have any options if there are no longer any funds available to operate the hotel," Toy said. "I'm seeking instructions from the court on shutting down the operations."