Dear Source:
October 1 – The Board of Directors of the St. Thomas-St. John Chamber of Commerce has endorsed a $10 million investment in a new hotel at Yacht Haven Grande on St. Thomas. When built, the new internationally-branded hotel will be the first new hotel built on St. Thomas since 1980. The 110 to 125-room facility would boost employment, during the construction phase and after opening; add critically needed hotel rooms to the island’s low inventory; and provide revenue through hotel and gross receipts taxes from the project and the surrounding supporting businesses.
Sebastiano Paiewonsky-Cassinelli, president of the Chamber, stated, “We cannot over-emphasize the importance of this project to St. Thomas and more broadly the entire territory. The loan is essentially a joint venture among the Virgin Islands Government; Island Global Yachting, the owner of Yacht Haven Grande; and Polcom Group, a modular construction company. This public-private partnership, with most of the $38 million in funding coming from the private partners, repays the government at interest rates that make the project feasible, estimated to amount to $3.6 million. In addition, the Virgin Islands Government will receive 5 percent of net cash flow from the project and will hold a first security interest in the collateral (which includes free-hold real estate) evidenced by a mortgage. This is a sound business proposition and one which the Chamber endorses without reservation,” he added.
“We have to realize that the territory is a very different destination after the devastation of Hurricanes Irma and Maria in 2017. Several major hotels have still not opened, and room inventory is half of what it once was. Airline arrivals are down by more than 40 percent. St. Thomas and the Virgin Islands need a significant new project to boost tourism across the board and show that ‘we’re back and moving forward’. We believe that a new Yacht Haven Grande hotel would both stimulate our tourism revival and show other investors that the Virgin Islands is still a force to be reckoned with. And an internationally-known, four-star hotel group will provide the marketing, branding and reservation know-how to put the territory back in competition with its neighbors and destinations further-afield,” Paiewonsky-Cassinelli stated.
“Island Global Yachting is a long-standing business partner in this community. Since Yacht Haven Grande opened in 2006, the company has offered berthing for mega-yachts, upscale retail and office space, restaurants, and outdoor venues for events on a beautifully-maintained property. The loan being considered would be made to an existing corporate citizen and one that we are proud to have promoting our territory. I and my fellow board members urge the members of the 32nd Legislature to vote favorably for this measure,” he concluded.
The Board of Directors of the St. Thomas-St. John Chamber of Commerce
