Hawaii is beginning to feel the pressure of a tighter real estate market, as plans to transform a Honolulu boutique hotel into a luxury condominium residence, with units starting at $5 million, has been cancelled.

Developer RKL Beachside had planned to morph the Waikiki Beachside Hotel into the Royal Kai Lani, a luxury condominium with ten full-floor residences. The developers also planned to build an outdoor dining area and a rooftop garden and spa. Plans to convert the hotel into a collection of 3,000 square foot residences were cancelled due to poor sales, according to an article in the Honolulu Advertiser. Instead the developer plans to sell the hotel as-is.

Other high-end real estate developments are faring better on the islands, despite their similarly high price tags. On Kauai, the Koloa Landing at Poipu is under construction, though condo prices at that luxury enclave top out at around $3 million. On Maui, the Ritz-Carlton, Kapalua Bay is building a collection of whole and fractional residences/). Fractional units through the Ritz-Carlton Club start at a more wallet friendly $300,000, but the hotelier is apparently betting that the luxury real estate buyer is, in fact, recession proof. Wholly owned homes at this project begin at $3.9 million.