Hawaii tourism sprang from downtown saloon

It may come as new information to some that tourism got its initial funding in the 1800s from a small plot of land in a small saloon at the corner of Nuuanu Avenue and Merchant Street in downtown Honolulu. How is that possible?

While searching through material about the 125-year-old Royal Saloon building for this column, it became evident that liquor actually gave tourism its start in Hawaii. As background, in 1862 the Hawaiian government officially permitted the sale of "ardent spirits" after many years of typically unheeded suppression. That caused saloons in those early days to burst out to serve the hordes of sailors looking for some fun in lower Nuuanu. Nuuanu Avenue became known as "Fid Street," which was a sailor’s term for booze.

The liquor/tourism scenario got started in 1890 when a Brit by the name of Walter Chamberlain Peacock (WC as he was called) bought a piece of property at the mauka/Diamond Head corner of Nuuanu and Merchant Street. In those early days, with thousands of sailors on liberty wandering the narrow streets of Hono­lulu, WC figured a saloon could work out pretty well.

Thus he designed the Royal Saloon with its distinctive corner entrance and — still intact — white stucco pilasters, balustrade and cornice. There is an article that says, "the Englishman gave it windows and door bays along the street creating a feeling of spaciousness."

Actually Peacock, ever the shrewd businessman, had a string of pubs in Hono­lulu. His other saloons, The Pacific and The Cosmopolitan, are gone, but luckily for us the delightful Royal Saloon building thrives to this day as Murphy’s Bar & Grill.

Originally his bar was called the Royal Tavern and was a gathering place serving such notables as Mark Twain and King Kalakaua, as well as ship owners, businessmen and other royalty. The popular establishment also carried the name Royal Hawaiian Tavern, and since 1987, Murphy’s. It would be fun to say it has always been a drinking place, but during Prohibition it operated as a furniture store.

Under whatever name, apparently WC cleaned up with the Royal Saloon. W.C. Peacock & Co. Ltd. also distributed gin and other types of hard liquor in distinctive bottles that, interestingly, are eagerly sought after today by collectors. He made lots of money in the saloons, but his real wealth came from the wholesale booze business.

WC became so rich he bought a piece of property on the beach in Waikiki in the early 1900s and proceeded to build an elaborate mansion. That wasn’t unusual because the beach even then attracted royalty and other moguls who built large residences and played there regularly.

Waikiki’s first overnight accommodations for visitors during the mid- to late-1880s were found in bath houses on the beach, which sometimes had a few guest rooms with few or no services. WC observed an increasing number of people looking for lodging and decided a grand, full-service hotel on the beach in Waikiki might be a good investment.

To make room for his hotel, he moved his mansion back from the beach, hired well-known architect Oliver Traphagen and used his liquor wealth to fund the first substantial hotel on Waikiki Beach. He called it the Moana, which initially had 75 rooms. That was in 1901. The Moana did not flourish at first, but soon became known around the world as "The First Lady of Waikiki."

The fact that the three upper floor rooms had their own bathrooms and telephones and the first floor included a billiard parlor, saloon, main parlor and library soon helped it gain a stream of guests. It is said WC actually planted the famed banyan in the hotel’s courtyard.

Fast forward 125 years to today where the original WC-designed Royal Saloon is a downtown landmark run by Don Murphy and his wife, Marion. Don says when he took it over in 1987 he had no experience in running a bar and restaurant.

He had worked in commercial real estate in California with a friend, Dick Berry. Berry came to Hawaii and subsequently purchased all the property on the Merchant Street block from Bethel to Nuuanu that included the Royal Saloon building, which at the time was operated as Matteo’s. It was Berry who asked Don to take over the Royal Saloon building and turn it into an Irish pub.

Murphy’s is a landmark today, not just for the thoughtful preservation of the building or the good food and ambiance, but for what Don and Marion provide to the community year after year. Consider that an annual event at Murphy’s (these events often spill over onto Nuuanu and Merchant) has raised $800,000 for the Hawaii Children’s Cancer Foundation.

Their generosity at fundraising events extends to the Ronald McDonald House, the Dave Lyman Foundation, Hawaii Literacy and the University of Hawaii athletic department.

There is a difference between WC Peacock and Don and Marion Murphy. WC took his money and went to Waikiki to try to make more money. Don and Marion use their talent to raise money for the community.

Keep Hawaii Hawaii is a monthly column on island architecture and urban planning. Robert M. Fox, president of Fox Hawaii Inc., studied architecture in California and Japan. He was one of the founders of the Historic Hawai‘i Foundation in 1974. David Cheever, owner of David Cheever Marketing, has served on the boards of the Historic Hawai‘i Foundation and the Hawaii Architectural Foundation. Send comments to keephawaiihawaii@staradvertiser.com.