FILE - The Coco Palms Resort retail annex where one shop on the second floor was gutted by fire in Wailua on the island of Kauai, Hawaii, is pictured on Dec. 3, 2009. The Honolulu Star-Advertiser reports the Coco Palms Resort on the island of Kauai will be torn down for a new 350-room hotel. The Coco Palms Resort on the island of Kauai will be torn down for a new 350-room hotel, the Honolulu Star-Advertiser reported. The resort opened in 1953 next to a historic coconut grove and an ancient Hawaiian fishpond. At one time, the community wanted the resort rebuilt, but those sentiments have changed, said Kauai Council Chairman Mel Rapozo.