Kamehameha Schools said today is plans to close the Keauhou Beach Hotel on Hawaii island in October, putting 112 employees out of work.

“Planning is underway to demolish the hotel structure itself in order to create the opportunity for Kamehameha Schools to re-claim and restore a portion of the cultural landscape in Kahaluu ma kai that has been covered or impacted by the hotel and its surrounding structures for decades,” Kamehameha Schools said in a news release.

Kamehameha Schools CEO Dee Jay Mailer met with a majority of hotel employees this morning to tell them the news.

Kamehameha Schools said “financial losses at the hotel over the last six years have been substantial.”

The hotel is managed by Outrigger Hotels.