St. Thomas resort talks with major hotel chains as rezoning bid advances

Lawmakers on St. Thomas heard Monday that a planned 169-room resort near Morningstar Beach is negotiating with three major international hotel chains to operate the property, though no deal has been struck with any of them.

St. Thomas Hospitality LLC presented its case to the Committee of the Whole while seeking to rezone land for the project. Attorney George Dudley, representing the developer, explained that the resort's final design and facilities will be shaped by whichever brand partner the company brings on board. "The plans for the site cannot be finalized until we have concluded an agreement with the flag," Dudley told legislators, noting that each chain would impose its own operational standards.

The development would sit on roughly 6.66 acres in Frenchman's Bay Quarter and feature multiple guest buildings, a pool, dining and spa facilities. Under Bill 36-0407, the company is asking to rezone two parcels covering 1.37 acres from low-density to medium-density residential use. Those parcels are surrounded by other medium-density land already held by the developer.

The Department of Planning and Natural Resources backed the rezoning, saying it aligns with the territory's land use plan and would boost tourism, lodging supply and local jobs. Yet neighbors have voiced worries about traffic flow, parking, road capacity, stormwater runoff and sewage handling. Some also raised questions about the hotel's closeness to Morningstar Beach and its impact on the residential character of the area.

Ryan Lee, who will lead the project's senior management, told lawmakers the property has room for a multilevel parking structure, though its final form and capacity remain undecided. He said construction could span roughly two years once permits are in hand, but Dudley cautioned that timeline. He pointed out the developer would be competing with large disaster recovery efforts across the territory for workers and materials. "We still have to keep our promise to develop the hotel within some kind of a reasonable budget on a reasonable timetable," Dudley said.

Lee stressed that funding is not a constraint. "We've been developing hotels for about 25 years now, and we are very, very well funded," he told the committee. He also noted the company is working on roughly 30 projects across the United States and expressed confidence in hiring staff once the hotel launches.

Several senators voiced backing for the venture. Senator Hubert Frederick said he supports "any business venture that will improve the overall economy of the Virgin Islands." Senator Avery Lewis urged the developer to source supplies locally and ensure workers gain benefits tied to the hotel franchise.

The Department of Planning and Natural Wildlife has flagged the possibility that Virgin Islands tree boas, a protected species, could be found on the site. The developer has been told what steps to follow if the species shows up during construction.

No vote took place during Monday's hearing. The rezoning still needs legislative approval to move forward.