After a holiday break taken by construction crews, the demolition phase of Coco Palms is planned on being completed within the next 60 days.

As part of the $3.5 million selective-demolition project, the Queen’s Audience Hall and parking garage will remain intact. By not leveling the hotel, representatives hope to keep the integrity of the structures.

Demolition included tearing out the drywall, making mechanical and electrical repairs, clearing out the Lotus Restaurant and elevating the bungalow buildings so they adhere to Federal Emergency Management standards.

By spring, crews are expected to start Phase II — renovation and reconstruction — which will begin after the company receives its building permits.

The iconic Coco Palms hotel was damaged by Hurricane Iniki in 1992 and has sat idle since.

The 74-acre property will boast 350 rooms, 12,000 square feet of retail space, three restaurants, leisure areas and a four-acre cultural center.

The hotel will also create about 1,800 jobs.

The $175 million hotel is expected to open its doors by the end of 2018.

It will open under the Hyatt brand and be renamed Coco Palms Resort by Hyatt. It will be part of the Hyatt’s Unbound Collection, one of six upscale and luxury properties around the world.

Other Hyatt Unbound locations include Miami Beach, Florida; Austin, Texas; Paris; Carmelo; Uruguay; and Phoenix, Arizona.

Other plans for the hotel include operating a shuttle between Coco Palms and Wailua Beach, which will be open to guests and the public.

As another way to mitigate traffic along Kuhio Highway near Coco Palms, the Hawaii Department of Transportation plans to widen Kuhio Highway from Kuamoo Road to the Kapaa Bypass Road. The $15 million project is expected to begin three years after funding is secured, said Timothy Sakahara, HDOT spokesman.

That project, which was identified by the Kapaa Solutions Working Group, made up of state, county and community business representatives, is the department’s top priority, he added.