The new owners of King Solomon Hotel have assured that all 69 former employees will retain their jobs as the hotel embarks on a new journey in the country’s tourism sector.
This follows concerns raised by the Workers Union Solomon Islands (WUSI), which had expressed disappointment that 46 former employees were issued redundancy or retirement letters by the new owners.
However, former Prime Minister of Papua New Guinea (PNG) Peter O’Neill, whose company, O’Neill Remington Group, holds a 45% stake in the new arrangement, has denied these claims.
Speaking during the official handover of ownership in Honiara on Friday, O’Neill stated:
“We are not here just for business. I want to assure everyone that the staff who are here will continue to work here. That’s the whole idea of staging this construction as we move forward.
“So, I believe that such information creates a wrong perception that we are not going to look after our people. The Solomon Islands National Provident Fund (SINPF) is the workers’ fund, and our number one priority is to look after our workers,” O’Neill, who is currently a Member of Parliament in PNG, said.
The SINPF, as the majority shareholder with a 53% stake, has confirmed that all former employees of King Solomon Hotel will be retained.
According to an official statement, the SINPF Board, through its newly established company, King Hotel and Resorts Limited, has acquired all assets of Solomon Islands Resorts Limited, commonly known as King Solomon Hotel. The asset purchase contract also includes the trading business name “King Solomon Hotel.”
This acquisition was approved by the Minister of Finance, allowing the SINPF Board to invest in the hotel’s purchase and ensure its continued operation and expansion. The transition took effect immediately after the purchase agreement was finalized yesterday.
Negotiations for the acquisition began in 2013 between SINPF and the late Shane Kennedy and his wife, Susan Kennedy. The agreed purchase price of $50 million includes land located in five separate parcels, as well as equipment.
Minister of Finance and Treasury, Manasseh Sogavare, highlighted the historical significance of the hotel, stating that the land on which it stands was gifted by the people of Solomon Islands in 1961 for the purpose of establishing a hotel.
“For 65 years, this site has been home to a continuously operating and progressively improving hotel, even during the COVID-19 pandemic. The hotel has undergone several ownership and name changes over the years. It began as Blom’s Hotel, later became Hibiscus Hotel, then Highland Island Hotel, and finally King Solomon Hotel,” he said.
Sogavare added that the King Solomon Hotel has long been a vital part of Honiara’s tourism and hospitality industry, providing a welcoming environment for both international visitors and Solomon Islanders from the provinces.
The hotel was originally built by an American named Alvin, who saw the need for accommodations in Honiara after witnessing a Ni-Vanuatu man being denied lodging at the then Mendana Hotel in 1960s.
His daughter, Kathie Saunders, recalled that the then Commissioner of Lands from New Zealand encouraged her father to build on the site, predicting that the location would become a central hub in the city.
Alvin started with nine rooms and later expanded the property to include Hibiscus Café and additional accommodations. The hotel saw further expansion in the 1990s under Island Hotels, which added more rooms, a cable car, Bamboo Café, and Pipe Line Bar. It was later renamed King Solomon Hotel.
In 2002, Australians Shane and Susan Kennedy took over ownership, adding local artisan touches to the hotel while maintaining the name of its bar as Hibiscus Bar. They later established another hotel under the same name in Gizo, Western Province.
Minister Sogavare outlined the ambitious redevelopment plans under the hotel’s new joint venture ownership. The transformation will take place in three phases:
Phase One – Immediate renovations to enhance existing facilities and ensure the hotel is ready to accommodate guests for the upcoming Pacific Islands Forum Leaders Meeting in September.
Phase Two & Three – A comprehensive redevelopment aimed at increasing room capacity and upgrading the overall quality of accommodation in Honiara.
Upon completion of all three phases, the King Solomon Hotel is expected to play a key role in transforming Honiara’s skyline while providing a modern hub for tourists, business travelers, and local visitors from across the Solomon Islands.
“The King Solomon Hotel has had a long journey, welcoming tourists and nationals alike over the years. Today, that journey continues under new ownership and management, preserving its traditions of hospitality for all who walk through its doors,” Sogavare said.
