President-elect Barack Obama, returning to his home state of Hawaii for the holidays, plans a beachside vacation at one of Oahu's most exclusive properties, according to one insider.

Arrangements are being finalized for the Obamas and the families of two or three friends to stay at a Kailua beachfront location with three modern, multimillion-dollar homes, the Associated Press reported yesterday, citing an island resident involved in the planning. Each home wraps around a lagoon-style swimming pool, with palm trees, grassy lawns and retractable glass walls.

Obama and his friends plan to rent the privately owned homes for several days including Christmas, according to the AP's source, a Democratic activist who spoke Thursday on condition of anonymity because he was not authorized to reveal the details.

Some Realtors and area residents said the Paul Mitchell estate in Lanikai is one property that matches the AP's description of the oceanfront compound. The 1.3-acre beachside estate is a walled compound of seven modern Polynesian style buildings around a pool with a waterfall. The property, with seven bedrooms and 13,000 square feet under roof, rents for $8,250 a day in peak season.

The estate was built for Mitchell, hairstylist and founder of a retail line of hair care products, who died in 1989. It is listed on multiple luxury vacation rental sites and has also been used by wedding businesses. The property administrator could not be reached.

One Realtor, however, suggested it was an unlikely choice because of the security surrounding the president-elect. “;To shut down Lanikai would be more trouble than it's worth,”; he said.

For the last Obama Hawaii vacation, in August just before the Democratic National Convention, his family and friends stayed in one large house on Kailua beach.

The Obamas spent much of the week enjoying typical tourist activities: eating shave ice, golfing, going on picnics, sightseeing. The then-candidate also made daily visits to his ailing grandmother, Madelyn Dunham, in her Beretania Street apartment.

In October, less than two weeks before the election, Obama spent about 22 hours in Honolulu visiting Dunham, who was dying from cancer. This month's trip reportedly will include a private family memorial for Dunham, who died Nov. 2 at the age of 86.

Obama's spokesman would not comment on his holiday travel plans.

Gov. Linda Lingle, meanwhile, said Valerie Jarrett, a close Obama friend and adviser who is co-chairwoman of his transition office, would accompany Obama to the islands. Lingle said she intended to meet with Jarrett.

The governor also invited Obama to meet with her.

She said yesterday that members of Obama's transition team will tour new energy initiatives in Hawaii while Obama is here.

Lingle said she hopes to show off some of the state's renewable-energy efforts and perhaps get federal support.

Lingle said she spoke with Jarrett on Sunday about setting up the meetings.

The governor noted that building up clean energy industries is one of Obama's priorities. The New York Times reported this week that the president-elect is working with congressional leaders on a multibillion-dollar plan to create a more energy-efficient economy with possible tax breaks or government subsidies for a variety of clean-energy projects.

Lingle, who campaigned heavily on the mainland for Obama's Republican opponent Sen. John McCain, has been criticized for skipping a governors meeting with Obama this week in Washington.

Instead of meeting with Obama, Lingle introduced a plan with a Palo Alto, Calif., company to set up 100,000 electric-car charging stations around Hawaii and possible state incentives for electric car buyers.