HONOLULU -- The Royal Hawaiian Hotel shut down Sunday for a seven-month renovation.

That means the hotel industry will lose 528 rooms in Waikiki during the summer months.

Some of the Royal Hawaiian's 400 employees have transferred to other hotels. Some will take time off. All employees will continue to receive medical benefit, officials said.

The 81-year-old hotel, also known as the "Pink Palace," has closed only once before during World War II. It was used for Navy housing after the bombing of Pearl Harbor.

The old hotel is going to get a $110 million makeover.

It is scheduled to reopen on Jan. 1.