Hilton-Branded Resort Proposed for Former Sugar Bay Site as EDC Grants Compliance Ultimatum to STR Management

The Economic Development Commission’s Board heard testimony from a new applicant anticipating operating the former Sugar Bay Resort property on St. Thomas and held a compliance meeting for STR Management LLC via a virtual meeting on Zoom Tuesday.

Attorney Adriane Dudley, representing DV USVI Investment LLLP, said that the company is seeking tax incentives on St. Thomas to operate as a Category III Hotel/Guesthouse.

“This triple L-P is planning to reopen what’s been known as the old Sugar Bay Resort. This will be a magnificent property under the Hilton brand,” said Dudley.

The property will have 300 rooms on its 30 acres, and according to Dudley, it is anticipated to open in the first or second quarter of 2026. $20 million was invested to purchase the property and the investors will have invested $62 million more for the construction of the resort. Dudley also added that the hotel will employ 150 persons at the time of opening, and will increase to 175 in the first quarter of 2027.

DV USVI Investment LLLP is seeking a 90% exemption on income tax, a 100% exemption on gross receipts tax, a 1% exemption on excise tax, a dividend withholding tax exemption, an interest withholding tax exemption, a 100% exemption on real property tax, and a 20% customs duty exemption.

“We believe that this project will contribute significantly to the Virgin Islands tourist industry as well as the Virgin Islands economy,” said Dudley.

After hearing from DV USVI, the EDC then held a compliance meeting for STR Management, LLC, a company found to be in violation of compliance orders. According to Joy Penn, senior compliance officer for EDC, STR Management LLC applied for tax incentives on May 22, 2012.