ST. CROIX — A $15 million extended-stay hotel featuring 68 rooms is being proposed for Estate Mount Welcome, near the D.C. Canegata Ballpark, in a development that could create up to 75 permanent jobs and expand St. Croix's accommodation offerings. The developers told lawmakers Monday that financing is available to complete the project, although a zoning change and additional permits must first be secured.
Stonehouse Junction LLC, whose principal is Wally Hamed, intends to construct the three-story hotel on a 0.83-acre parcel owned by the company. Plans include guest suites equipped with kitchenettes, 76 parking spaces, office and storage facilities, landscaping and connections to public utilities.
Hamed told lawmakers that the proposed building would occupy approximately 40 percent of the property. Construction is projected to cost $15 million and take 18 to 24 months once the necessary approvals are obtained.
Alicia Barnes, representing the property owner, assured senators that "all funds are available to commence and complete the project." She said the development would "enhance St. Croix's tourism product by increasing the hotel room inventory."
The project requires lawmakers to approve Bill 36-0406, which would change the property's zoning from W-2 (Waterfront-Industrial) to B-2 (Business-Secondary/Neighborhood). The measure was considered during Monday's Committee of the Whole hearing.
The Department of Planning and Natural Resources supports the proposed rezoning.
Planning Technician Keshoy Samuel said the development is "consistent with the goals, policies, and strategies of the 2024 Comprehensive Land and Water Use Plan."
Samuel explained that the property is situated within an established commercial corridor and that the proposed hotel would be compatible with surrounding development. The site has remained vacant for more than 20 years.
DPNR's review also noted that drainage, flooding and water-table considerations were discussed during a July public hearing. Those issues would remain relevant as the project advances through the permitting process.
The proposal received an enthusiastic response from several senators, who described the development as an opportunity to strengthen Christiansted's economy, increase tourism-related employment and encourage further private investment.
Senators Franklin Johnson and Novelle Francis Jr. praised the proposed location, describing it as ideal for hotel development. "St. Croix needs more than a conversation about economic development. We need strategic investment that turns opportunities into tangible results," Francis said.
Hamed estimated that the completed hotel could employ between 50 and 75 people.
Senator Hubert Frederick welcomed the potential effect on surrounding property values and encouraged the developers to explore incentives available through the Economic Development Authority.
Senator Kurt Vialet emphasized the broader economic benefits for Christiansted businesses. "This is going to be a big boom for all of the restaurants in Christiansted," Vialet said.
The proposal also revived a longstanding discussion about the relationship between St. Croix's hotel room inventory and the availability of airline service. Vialet argued that additional accommodations would strengthen the territory's ability to persuade airlines to expand service to St. Croix, rather than waiting for additional flights before pursuing hotel construction.
"The hotel rooms are expanding, so now we could be able to go out and market St, Croix for additional flights because we have additional spaces to stay," he said.
Senator and Lieutenant Governor-elect Milton Potter agreed. "I really think that the rooms send a signal to the airline that the Virgin Islands is open for business, and it unlocks possibilities of additional air flights," Potter said.
The discussion comes as St. Croix continues efforts to strengthen its air connections. As The Consortium reported, United Airlines returned to the island on October 31 with new nonstop service between Newark and St. Croix, restoring a connection to the New York metropolitan area after 32 years.
While the proposed hotel could strengthen the island's tourism capacity, any future expansion of airline service would depend on market demand and carrier decisions.
Bill 36-0406 has not yet received final legislative approval. The rezoning measure is expected to be placed on the agenda of an upcoming legislative session for a vote.
