Kayak Hotel CEO Doug Riddle said Tuesday the company is closing its Hawaii hotel, which is one of the largest in the state.
Riddle said the company has a $1.5 million credit line in the bank and a $750,000 loan for a renovation.
The company has been operating the hotel for more than a decade, with several locations across the state, but the move comes just days after Hawaii lawmakers approved a tax hike to pay for a new hotel on the island.
“The financial situation that we are in right now is unsustainable,” Riddle told the Maui News.
Hawaii’s tax hike, which took effect Jan. 1, will cost the state more than $3.4 billion.
Riddle has said the hotel is losing money and could close its doors by the end of the year.