V.I. government reached agreement on Frenchman’s Reef reopening and emergency-shelter role

Gov. Kenneth E. Mapp announced on Oct. 3, 2018, that the Virgin Islands government had entered into a memorandum of understanding with DiamondRock Hospitality, owner of Frenchman’s Reef & Morning Star Beach Resort on St. Thomas, to support the hotel’s reopening.

Under the agreement, Frenchman’s Reef and other Virgin Islands hotel properties could voluntarily impose an Economic Recovery Fee to raise money for rebuilding or expansion. Mapp also said Frenchman’s Reef would be equipped to serve as a shelter during future weather emergencies.

Mapp said he had sent legislation to the Legislature on Oct. 3, 2018, that would allow hotels to raise overnight occupancy taxes up to 20%, with any amount above the mandated 12.5% returned to the property to help fund and recoup building costs.

DiamondRock Hospitality Executive Vice President Bill Tennis said the hotel was expected to reopen in the first quarter of 2020. The property had been damaged in the 2017 storms.

According to the government, Frenchman’s Reef had 502 rooms and 30,000 square feet of meeting space.

Official source: https://www.vi.gov/v-i-government-and-frenchmans-reef-reach-agreement-to-help-hotel-reopen-and-serve-as-hardened-emergency-shelter/