Given that Lihue is more central, it is a far better location for access to the entire island than Princeville. For example, many tourists desire to drive up the Waimea Canyon. Use google or your favorite map application to evaluate drive times from Princeville to the west and south sides and compare with the Lihue resort (along with drive time from Lihue to Hanalei). If the resort is truly Lihue, it will be south of the worst traffic bottlenecks.