VICI and Club Med Revive St. Croix Resort in $X Billion Triple-Net Lease Bet
Event summary
- VICI acquires Carambola Beach Resort in St. Croix, entering a long-term triple-net lease with Club Med for redevelopment.
- Project targets Q4 2027 completion, transforming the 150-key resort into Club Med’s Exclusive Collection standard.
- VICI will fund redevelopment, with Club Med operating the resort under BREEAM and Green Globe sustainability certifications.
- Deal marks Club Med’s return to U.S. soil, with projected 200+ direct jobs and economic stimulus for St. Croix.
The big picture
VICI’s acquisition of Carambola Beach Resort and its partnership with Club Med reflect a broader trend of REITs investing in experiential real estate, particularly in high-growth tourism markets. The deal aligns with VICI’s strategy of partnering with premium operators to enhance asset value, while Club Med’s return to the U.S. signals confidence in the all-inclusive segment’s resilience. The focus on sustainability and local economic impact underscores shifting priorities in hospitality development.
What we're watching
- Execution Risk
- Whether VICI and Club Med can deliver the redevelopment on time and within budget, given the resort’s historic preservation requirements.
- Market Penetration
- How Club Med’s reentry into the U.S. market will compete with established all-inclusive brands in the Caribbean.
- Sustainability Impact
- The pace at which the resort achieves BREEAM and Green Globe certifications and its long-term environmental footprint.
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