The historic and once hurricane-devastated Coco Palms Resort on Kauai will reopen under Hyatt Hotels’ management.

Reconstruction of the world-famous property, all but destroyed by Hurricane Iniki in 1992, will begin early next year with the 363-room resort to reopen to guests in 2017, Hyatt announced Wednesday.

Coco Palms Hui LLC, a local investment group, bought the property in 2013. The group, which paid $12.3 million for the hotel, was about the fourth developer to express interest in the resort since it closed.

The resort gained worldwide notoriety when it was used as the location for the 1961 Elvis Presley film "Blue Hawaii." It was originally built in 1953 on grounds that once housed Deborah Kapule Kekaiha‘akulou, Kauai’s last reigning queen.

From its humble beginnings with 20 guest rooms, the resort expanded under the leadership of the late Grace Guslander.

"The redevelopment of The Coco Palms Resort is not just a feel-good story. The investment of time, money and labor to revitalize the resort grounds and reignite the spirit of this legendary hotel is great news for our community," Kauai Mayor Bernard Carvalho Jr. said Wednesday. "Hyatt’s brand presence in our community with Grand Hyatt Kauai Resort & Spa is exemplary and we look forward to Hyatt’s contributions as our community continues to grow in importance as a tourist destination."

The resort’s redevelopment plan will preserve the original footprint of the property and signature lagoon while rebuilding approximately 331 guest rooms and 32 bungalows, multiple restaurants, lounges and swimming pools. Visitors’ stays will be enhanced by the adjacent Wailua Beach and River, one of the largest coconut groves on the Hawaiian Islands and sweeping views of Nounou Mountain, locally known as the Sleeping Giant.

Plans are in progress for the catalog and potential restoration and reuse of historic and unique elements of the hotel. A community center highlighting the cultural significance of the site will be located on property which will serve to educate residents and visitors about the area’s native culture, history and arts.

"Our endeavor to revitalize the grounds and rebuild, all the while preserving the soul of the iconic resort, is an ambitious project," said Tyler Greene, manager of Coco Palms Hui LLC. "We are delighted to join forces with Hyatt, another Hawaiian icon of hospitality that has been delivering authentic hospitality to guests for over 30 years in Hawaii."

Jordan Meisner, senior vice president of operations for Hyatt, said the chain’s brand presence on Kauai is underscored by "the excellent reputation and memorable experiences that Grand Hyatt Kauai Resort & Spa associates have created for guests for the past 23 years."

"We look forward to welcoming a new generation of visitors to the Coco Palms Resort … while recognizing and honoring the spirit and history of the resort."