Ever since the U.S. Virgin Islands were struck by two major hurricanes in September 2017, the Marriott Frenchman’s Reef Resort on the island of St. Thomas has been closed. As reported in a recent article on the St. Thomas Source website, this 478-room resort was sold in early May to an affiliate of the Fortress Investment Group, based in New York. The Fortress Investment Group was established in 1998.
After closing for repairs to damage caused by the hurricanes, the Frenchman’s Reef Marriott Resort & Spa experienced several financial challenges. The Covid-19 health pandemic brought about a huge decrease in visitors, and the Airbnb lodging marketplace has increased in popularity.
The previous owner of the resort, the Diamond Rock Hospitality Company decided to stop renovation work and placed the property for sale after lowering its future value.
In April, the local Economic Development Commission held a meeting at which the resort requested waiver extensions regarding tax break qualifications. The tax break obligations require that companies donate a minimum of $90,000 to charity every year and maintain a full-time workforce of at least 415 employees.
At the Economic Development Commission meeting, it was announced that a potential buyer was interested in purchasing the Frenchman’s Reef Marriott Resort & Spa, which is the largest hotel on St. Thomas.
Thomas W. Pulley, the chief investment officer at the Global Real Estate division of Fortress Investment Group said that the company is extremely excited about rebuilding and reopening the remarkable global destination.
The New York based Fortress Investment Group regularly manages billions of dollars in assets for more than 1,750 private investors and institutional clients.
For details: www.fortress.com/contact