Club Med Returns to U.S. with St. Croix Resort Redevelopment — Club Med SAS

Event summary

Club Med acquires and plans to redevelop the Carambola Beach Resort in St. Croix, U.S. Virgin Islands, marking its return to U.S. soil.
VICI Properties Inc. has entered into a long-term triple-net lease with Club Med, funding the resort's redevelopment to Club Med's Exclusive Collection standards.
The 150-key resort is expected to generate approximately 200 direct jobs and stimulate the local economy through collaborations with local businesses.
Construction is set to begin in summer 2026, with a targeted reopening in Q4 2027.

The big picture

Club Med's strategic expansion into the U.S. Virgin Islands reflects a broader trend of premium all-inclusive resort operators seeking to capitalize on the growing demand for high-quality, culturally rich travel experiences. The partnership with VICI Properties Inc. underscores a shift towards long-term, triple-net lease agreements in the hospitality real estate sector, allowing operators to focus on their core competencies while leveraging the financial strength of real estate investment trusts. The redevelopment of the Carambola Beach Resort also highlights the increasing importance of sustainability and community stewardship in the tourism industry.

What we're watching

Execution Risk: Whether Club Med can deliver the redevelopment on time and within budget, given the complexity of the project and the target reopening date in Q4 2027.
Market Penetration: How Club Med's return to the U.S. market will affect its competitive positioning against other premium all-inclusive resort operators.
Sustainability Commitments: The pace at which Club Med achieves BREEAM and Green Globe certifications for the redeveloped resort, aligning with its Happy to Care sustainability commitments.