Developed as an exclusive retreat away from Waikiki, the resort became a popular destination for celebrities such as Frank Sinatra and Elton John; foreign dignitaries including Queen Elizabeth II, the Reverend Desmond Tutu, and the Dalai Lama; and eight United States presidents.

[6] In 1959, the land next to the Waialae Country Club was leased from the Bishop Estate by developer Charles J. Pietsch Jr., who partnered with hotelier Conrad Hilton,[7] and commissioned the architectural firm of Killingsworth, Brady and Smith of Long Beach, California.

[7] In the early months, the hotel openly provided "comps" (complimentarys, free of charge) to well-known personalities who helped to build its image.

[6] A 1964 article in the Honolulu Star-Bulletin noted that famous guests at the Kahala Hilton had included heiress Barbara Hutton; actors Kirk Douglas, James Garner, and Henry Fonda; adventurer Lowell Thomas; ex-Princess Suga of Japan; financier David Rockefeller; actress and singer Rhonda Fleming; and TV comedian Steve Allen.

[12] Starting in 1967, singer Danny Kaleikini was the headline entertainer at the Hala Terrace at the Kahala Hilton,[12] with a popular nightly show featuring Polynesian dancers.

[26][24] The "Wall of Fame" inside the Kahala Hotel features photographs of famous guests from over the years, including royalty such as Emperor Hirohito of Japan, King Juan Carlos of Spain, and Prince Charles and Princess Diana of the United Kingdom; actors such as Elizabeth Taylor, Lauren Bacall, John Wayne, Sidney Poitier, Bob Hope, and Robin Williams; and musicians including George Harrison, Rod Stewart, and Michael Jackson.

[27] In May of that year, protesters participating in international Empty the Tanks Day called for Dolphin Quest at the Kahala Hotel to release its captive marine animals.

[27] Dolphin Quest responded that its zoological facilities at the Kahala and at the Hilton Waikoloa Village supported vital scientific research related to marine life.