A billionaire’s presence on a Hawaiian island is pushing out longtime residents.
Larry Ellison, the co-founder of Oracle and the world’s 11th-richest person, bought 98 percent of Lanai in 2012 for $300 million, Bloomberg reported. The purchase of the 90,000-acre island came with the two Four Seasons resorts that provide jobs and homes for most of the island’s population, making Ellison a landlord or boss for most residents – and both for some.
Ellison owns the island’s main grocery store, the only gas station, the community newspaper and the only non-Four Seasons hotel. His development plans tend to be secret. Many locals have heard that he plans to make the island “sustainable,” though not how.
Residents say that no other entity can balance Ellison’s control, meaning his decisions carry the weight of the law, with minimal discussions of new projects and almost no due process. After the pandemic hit and Ellison moved to Lanai full time, the island became a popular destination for yachts and private jets and attracted big-name guests such as Elon Musk, Tom Cruise and former Israel Prime Minister Benjamin Natanyahu.
All that has brought economic pain to woodworker Chris Andrus, whom Ellison hired to help build a Nobu restaurant. Shortly after hiring Lanai Woodworkers, Ellison told the company’s owner to either leave or sell the business. He sold to Ellison – leaving Andrus out of work.
While Andrus says Ellison, who has since bought dozens more homes and businesses on Lanie, “has the right to do whatever the hell he wants with what he owns,” the control he has leaves residents with little power to influence infrastructure on the island.
Those who support Ellison, who has a net worth of about $90 billion, say he has done more for the island than its previous owner, fruit and vegetable magnate David Murdock, who has about $2 billion.
“He’s amazing,” said Gail Allen, who owns a gift shop in town and manages rental properties for Ellison’s visiting employees. “Don’t bite the hand that feeds you, please.”
The housing shortage on Lanai is extreme. As of early June, only one home on the island was for sale, listed for $7.9 million. While the median household income for Lanai is $59,000, richer residents are beginning to skew that higher. Locals whose families have lived on the island for generations are being forced out as more and more of Ellison’s employees move in.
Ellison promised Lanai that he would build a 150-unit housing development that would include homes for purchase. Pulama later changed its plans and announced the units would all be rentals instead.
[BB] — Victoria Pruitt
FAQs
Billionaire Ellison turning Hawaii's Lanai into “playground for the rich” A billionaire's presence on a Hawaiian island is pushing out longtime residents. Larry Ellison, the co-founder of Oracle and the world's 11th-richest person, bought 98 percent of Lanai in 2012 for $300 million, Bloomberg reported.
What did Larry Ellison pay for the island of Lanai? ›
Photo by Shutterstock. Oracle's Larry Ellison bought most of the Hawaiian island of Lanai for $300 million, becoming the boss and landlord to residents. Many ended up struggling financially, and some moved off the island.
What is Larry Ellison going to do with Lanai? ›
Ellison's sustainability-focused company Pulama Lanai intends to design a microgrid and remove two resorts that consume about 40% of the island's power off the existing grid owned by Hawaiian Electric. The exclusive resorts — the Four Season Lanai and Sensei Lanai — are both owned by Ellison, co-founder of Oracle.
Who owns the remaining 2% of Lanai? ›
The state and individual homeowners own the remaining 2 percent, which includes the harbor and the private homes where the 3,000 inhabitants live. Ellison stated his intention to invest as much as $500 million to improve the island's infrastructure and create an environmentally friendly agricultural industry.
Does Larry Ellison own the whole island of Lanai? ›
Larry Ellison is the co-founder of Oracle.
Billionaire Larry Ellison owns an island in Hawaii. 98 per cent of the island of Lanai is his property. And yet when he was speeding, he reportedly could not get out of it triggering praise for the honest policeman doing his job well, locals channels say.
Who owns 98% of a Hawaiian island? ›
Oracle cofounder Larry Ellison moved to Lana'i, Hawaii, full-time in 2020. Ellison purchased nearly 98% of the island, or 87,000 of the island's 90,000 acres, in 2012 for a reported $300 million.
Who owns Lanai today? ›
Since its initial conveyance in the early 20th century, a handful of people have called Lanaʻi their own, including “Pineapple King” James Dole and billionaire businessman David Murdock. The current owner of the island is Larry Ellison, the billionaire who co-founded the software giant Oracle Corp.
Who is the richest man in Hawaii? ›
Larry Ellison
Hawaii's biggest billionaire landowner, the Oracle cofounder bought about 97% of Lanai for $300 million in 2012, instantly making him landlord to almost all its 3,000 residents, many of whom are his employees.
Who owns most of Hawaii? ›
The Hawaii State Government.
How did the State of Hawaii get so much land? Of the approximately 4 million acres of land in Hawaii, the state government owns most of this.
Does anyone live on Lanai? ›
One of the smallest of Hawaii's islands, Lanai is home to only 3,200 residents.
Conclusion. The cost of living in Hawaii varies widely across its islands, with Oahu, Maui, and Kauai being the most expensive, and Molokai, Lanai, and the Big Island's Puna District being the cheapest.
Can I go to Lanai? ›
Getting to Lānaʻi
For those flying into Maui, you can travel to Lānaʻi's Mānele Harbor from Maui's Lāhainā Harbor through the Expeditions Ferry service. There are five round-trips daily. Ferry trips take roughly an hour.
Why is Larry Ellison so rich? ›
Options awards and vested stock received over the course of his lengthy career have made Ellison a billionaire many times over. His wealth even rivals that of Amazon.com (AMZN) founder Jeff Bezos. Ellison's wealth is based primarily on his shareholdings in Oracle.
Who is Larry Ellison current wife? ›
Where is Larry Ellison's house? ›
PALM BEACH, Fla. – Billionaire Larry Ellison, who was recently ranked by Forbes as the world's eighth-richest person, dropped $173 million of his fortune to buy a Florida compound in Manalapan, a wealthy town south of Palm Beach. The transaction marks the largest residential sale ever in Florida.
How much did Dole pay for Lanai? ›
In June 2012, Ellison bought Lanai for an estimated US$300 million. Before Ellison's purchase, the island was owned by billionaire Dole chairman David Murdock, who had reportedly been asking for US$1 billion for the island.
Who owned the island of Lanai before Larry Ellison? ›
A majority landowner is nothing new to Lanai — before Larry Ellison, it was David Murdock and James Dole — but Ellison's ownership feels grander.
Who owns most of Maui? ›
Who owns Maui? After the State of Hawaii, who owns over 154,000 acres on Maui, Alexander & Baldwin is the second-largest landowner at over 65,000 acres, and the U.S. Government is the third-largest landowner at over 33,000 acres.
