Peter Lee and the Crater Hotel

Peter Lee was a pioneer of Volcano tourism.

Between 1891 and 1898, he was manager of the Volcano House hotel, and later opened his own hostelry, the Crater Hotel, in the still undeveloped village area. It was located near what is now the site of the Volcano School of Arts and Science along Old Volcano Road.

According to newspaper accounts at the time, the hotel was meant to rival the Volcano House but aimed more at local visitors than those coming from around the world. It had 14 bedrooms, a large dining room that could seat close to 100 people, and separate rooms, each with their own fireplaces, for men and women to gather after dinner. The hotel was lit by its own acetylene plant capable of furnishing gas for 100 lights. Rooms cost $3 a night; meals were 75 cents. It was $17.50 to board for a week.

“Located as it is, the trip to the crater is shortened by two miles,” a story in a Hilo newspaper said at the time of the hotel’s 1911 opening. “It is a delightful walk to the brink of Kīlauea from the hotel. The hotel contains all the modern conveniences that are to be found in any hotel in the Union. Mr. Lee, the manager, is an old and experienced hotel man and guarantees to keep the service and cuisine the very best obtainable.”

The hotel’s opening was a gala event that took place on a Saturday night,  bringing a large crowd of attendees up from Hilo. More than 400 people were invited, and there was a free dinner, followed by a dance. Arrangements were made for a special train to leave Glenwood for Hilo at 1 a.m. for those who could not spend the night.

In 1913, the Crater Hotel was purchased by Arthur T. Short, who ran it until 1921when he sold it to the Inter-Island Steam Navigation Company, which also acquired the Volcano House from the Lycurgus family in that year. The buildings of the Crater Hotel were dismantled, and its lumber and furnishings were used to expand Volcano House from 80 to 115 rooms.

Lee continued to live in his Volcano Village home until his death in 1933. The home on the corner of Haunani and Old Volcano roads remains in family hands.


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