A midrise hotel adjoining the Ilikai has been closed off from its iconic sister tower in anticipation of extensive renovations that promise to revitalize the aging property. But the repositioning has angered some hotel tenants.

Three tenants at the Ilikai's Yacht Harbor Tower — Tanaka of Tokyo and two wedding operators — have filed lawsuits against the property's recent buyer alleging that renovation work is harming business.

The hotel's purchaser, Ane-kona Development Group, would not comment on the lawsuits, but documents in the suits show the company made offers to relocate tenants or buy out their leases before moving ahead with renovation plans.

The change under way at the Ilikai illustrates that revitalizing old hotels — a strong trend that has improved Hawai'i's tourism industry over the past several years — isn't always desirable for tenants dependent on hotel guests.

Local commercial real estate consultant Stephany Sofos said disputes are fairly common between landlords and tenants over improvement work that disrupts business.

"It's more common than not," she said. "Sometimes the only way you can get the attention of a landlord is to sue."

Anekona, a company headed by Big Island developer Brian Anderson, bought the Ilikai's 703 hotel units and commercial areas in two towers for $212 million in July.

Anderson plans to invest more than $40 million to transform the Ilikai's main Y-shaped tower containing 343 hotel rooms into an upscale hotel with rooms to be resold to individual investors.

Renovation work is scheduled to start next year, and includes a spa addition and other enhancements being designed by Hollywood, Calif.-based Powerstrip Studio.

More extensive changes are planned for the Ilikai's 360-room Yacht Harbor Tower, which property records show Anderson sold to an affiliate of San Diego-based real estate firm eRealty Cos. for $80 million.

Representatives of eRealty did not respond to requests for information on renovation plans or the lawsuits last week.

Major construction on eRealty's tower has yet to begin, but its rooms, pool and parking entrance were recently closed. Construction barricades separating the property from the main Ilikai tower and other changes led to litigation by the three hotel tenants.

Tanaka of Tokyo, in its suit filed against Anekona and eRealty's affiliate last month, claims that the barricades and notices of restricted tower access hurt business by at least 21 percent.

The Japanese steak house on the hotel's second-story lobby level also said in its suit that nearby lobby areas were no longer being cleaned and that its lease prohibits common area changes that adversely affect business.

The restaurant noted in its complaint that Anekona in August offered $250,000 for the roughly two years remaining on its lease.

Tanaka claims that $250,000 represents a $750,000 loss because it expected to earn $1 million in net profit over the two years. The company also said it has $670,000 in property improvements that have yet to be amortized.

Anekona project manager Adam Wong, in e-mails to Tanaka reproduced in the lawsuit, acknowledged that planned construction and closed hotel rooms would affect Tanaka's business, but that Anekona couldn't justify a $500,000 buyout.

"We definitely wanted to help you out in this situation but half a million is just too much money for us," Wong's e-mail said.

In another e-mail to Tanaka's attorney, Wong apologized for notices that suggested access to Tanaka was closed, but said renovation work is permitted under the lease.

Another lawsuit was filed in August by two wedding businesses with operations in a poolside chapel at Yacht Harbor Tower.

One plaintiff, Angel Chapel by the Sea, said in the suit that it lost business because of uncertainty over its space under lease through early 2008, and that it rejected an Anekona offer of $1 million and a 10-year lease for another site at the Ilikai.

Last week, the company settled its dispute with Anekona. The settlement was not disclosed, but it involved Angel Chapel ending its lease.

The other plaintiff in the suit, The Wedding Pledge, continues to argue its case that the Yacht Harbor Tower's purchasers are harming its business, which caters primarily to Japanese customers.

Jim McWhinnie, an attorney for Wedding Pledge, said wedding customers have been forced to use a service escalator used for garbage removal, and was recently forced to operate without air conditioning.

McWhinnie said his client obtained a preliminary injunction requiring removal of the barricades, though a judge has yet to rule on the case.

Observers expect the Ilikai's new owners to resolve the lawsuits and move ahead with renovation plans.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.