The Shelter Island Pointe Hotel on Shelter Island has been purchased and divided into two properties by Island Palms Hotel and San Diego-based Atlas Hotels. Atlas Hotels now owns and operates the west side of the property which consisted of the main lobby, A.J.'s restaurant, a 10,000 sf ballroom, and 150 guest rooms and has now been renamed the Kona Kai Resort. They plan to upgrade every element of the hotel to Four Diamond quality, build a new restaurant and bistro, and transform the former A.J.'s Restaurant into a bay view meeting and special event space.
Island Palms adds the east side of the former Shelter Island Pointe Hotel to its property, giving it a total of 174 rooms, two ballrooms, 5,000 sf of additional meeting space, tennis courts, and two pools and spas.