This Capitol Hill Luau Hut was the sister location to the original Luau Hut in Silver Spring, it opened in 1967. It was owned by Moon Kim and Paul Malonson. Like the original, it was richly and elaborately decorated in the Polynesian style, and very popular. The lower level held the Outrigger Lounge, where live music acts performed, including Kim Tsoy and the Sauce, the band of Moon Kim's son.
The building that housed Luau Hut had previously been a Chinese restaurant called The Chinese Lantern (moved to this location around 1946 and closed in 1960), then before it was Luau Hut (1967), it was another Polynesian restaurant, The Waikiki (1960-1967). By 1978, the building had become Kelly's Irish Times, though the Chinese origins are still clear in the building's architecture. There was briefly another Washington, D.C. Luau Hut near Dupont Circle.