Still in court. Doubt we wil see it open this season!

RL

I heard it was bought the other day--I don't know if it was a rumor. I don't know if it was still the same people from Intercontinental-just heard there was a closing

Deal confirmed in todays paper. New owner to invest $40 million to get it up and running. Hoping to do a soft opening in February but based on the delays on every other major construction project going on right now I would say April-May would be pushing it.
Good news for the Island as it will get another 200+ hotel rooms into the inventory.

This must be the day for minor miracles. Seems the government finalized the purchase of Lindqvist beach after all these years of talking about it.

"Seems the government finalized the purchase of Lindqvist beach"

WOW! Mt parents always talk about how that discussion was going on when they first lived there - in the 60s!!! That took forever.

Will the gov't get an easement for public land access?

What do you mean? They bought the land. The beach comes with it.

RL

Hi,

Here is article regarding the resort and its new ownership from yesterday's Virgin Islands Daily News:

http://www.virginislandsdailynews.com/index.pl/article_home?id=17599306

V.I. company purchases shuttered Smith Bay resort
Grand Beach Palace, formerly the Renaissance, sells for $17.5 million, will reopen as Crowne Plaza St. Thomas

By TIM FIELDS
Tuesday, November 7th 2006

ST. THOMAS - Virgin Islands-based Palm Resorts Holding Co. has closed on a $17.5 million purchase of the Grand Beach Palace resort - a property in Smith Bay that has been closed for more than two years.

Within a few weeks, Palm Resorts expects to launch a $40 million renovation of the property, and some rooms and services could open by February, company partner William Graulich said on Monday.

"It will be a total makeover, and we will open up areas as soon as they are ready," he said.

The property's new name will be Crowne Plaza St. Thomas and will be a four-star, full-service facility, Graulich said.

"There is a need for good, full-service facilities, especially on the East End," he said.

Palm Resorts - a subsidiary of international hotel giant InterContinental Hotels Group - plans to build a spa, a couple of restaurants and a deli and enlarge the meeting rooms at Crowne Plaza St. Thomas.

The resort also will be a full-service beachfront facility, he said.

Graulich, who has lived on St. Thomas for more than 20 years with his family, said he also plans to bring back Sunday brunch, which was a favorite outing he and his late wife enjoyed for years.

The V.I. Hotel and Tourism Association is pleased that the resort has been sold finally because it will add 290 available rooms to the island's offerings, said Luana Wheatley, the association's marketing director.

Before it closed, the resort could accommodate large meetings of about 600 people, and its suites appealed to families and wedding parties as well, she said.

The reopening of the resort will have a positive impact because it has been an important spot for businesses and conventions to meet and it provided many jobs, Wheatley said.

The purchase will resurrect job opportunities that were cut when the former owners, Mexico-based Palace Holdings, shut the doors more than two years ago.

In November 2003, Palace Holdings paid $9.75 million for the 290-room hotel resort - formerly known as Renaissance Grand Beach Resort - from CTF St. Thomas Corp.

In August 2004, however, Palace Holdings closed the resort following months of low occupancy, low profits, labor disputes and scrutiny from the V.I. Legislature about the labor disputes. The closure laid off about 300 employees, and the owners ultimately agreed to a $1 million severance deal for those employees.

Graulich said his company will consider past employees for job openings.

He said he made the offer to buy the property about 18 months ago, but troubles with another buyer slowed the transaction to a crawl.

In December of 2004, Palace Holdings and New York-based Future Limited, which was doing business as Caribbean Shining Star, entered into a purchase agreement for $18.6 million.

Caribbean Shining Star was promoting a talent competition and star-studded concert featuring Alicia Keys at the same time, and Palace Holdings had allowed Future Limited access to the property. The concert eventually was cancelled.

While Future Limited never came up with the money it promised to buy the hotel, the company had filed documents with the Lt. Governor's Office claiming its interest in the property, which restricted Palace Holdings' ability to sell it.

To clear the title and ready the resort for a new buyer, Palace Holdings went to court.

In December 2005, a ruling by District Court Magistrate Judge Geoffrey Barnard nullified Future Limited's claim to the property.

Graulich said all the negotiations and details finally solidified last month.

"It's very good when things come together," he said.

Palm Resorts Holding Company paid $17.5 million for the property, according to the Recorder of Deeds office. The sale was closed Friday.

Graulich is no stranger to owning resorts and he currently is involved in hotel projects in the Bahamas and in China.

- Daily News reporter Lynn Freehill contributed to this report. Contact Tim Fields at 774-8772 ext. 364 or e-mail [email protected].