The owners of the Sugar Bay Resort & Spa have engaged the Carlton Group to sell their 300-key resort in St. Thomas, USVI.
Sugar Bay is being offered on a fee simple basis and unencumbered by any franchise and management agreements. Based on reasonable assumptions, inclusive of a full renovation of the property, the buyer will have an all-in basis of under $150k per key which will provide the buyer with a huge profit upon stabilization.
“It is very rare to see a property of this magnitude being offered for sale unencumbered by any franchise and management agreements,” said Howard L. Michaels, Carlton Group Chairman. “This will allow the buyer to reposition the asset as they deem appropriate.”
The property is perfectly situated to implement a fractional and/or time-share ownership structure. New ownership may further maximize profitability with the development of an additional 220 units, which may be built at the property.
Sugar Bay is situated on a hilltop, which offers spectacular, uncompromised ocean views from just about every room. The resort boasts in excess of 16k square feet of meeting and event space, a secluded beach, three interconnected pools with caves and waterfalls and a 10k square foot full-service spa and fitness center. The guest experience is further enhanced by six existing F&B outlets.
Ownership is motivated to make a deal, and is offering the property at well below replacement cost.