Same thing -- coming land rent resets -- is happening in Manhattan, according to the New York Times.
Remarkably, no one seems to be suggesting that the government step in and transfer the appreciation to the lessees.
There is a wrinkle that, so far as I know, is not a possibility in Honolulu:
The expiration of a lease is particularly fraught for land-lease co-ops that were once rent-regulated apartment buildings. When their land leases expire, these co-ops will be dissolved and the apartments will once again become rent regulated, with the landowner becoming the landlord, Mr. Saft said. Unless new terms are negotiated, the co-op shareholders could become tenants of their former homes.London is another city where values have increased a lot and that has lot of leasehold housing, some of the leases going back to the Middle Ages. But, according to a commenter on the Times' story, in London the lessee can demand that the lessor sell, under court-supervised valuation.
Calling Peter Savio.