Bryan proposes bill to allow tax-exempt bond financing for hotel projects

Gov. Albert Bryan Jr. on Oct. 29, 2025, announced proposed legislation to amend the Hotel Development Act to allow a wholly owned subsidiary of the Virgin Islands Public Finance Authority to issue tax-exempt bonds for hotel projects.

Government House said the proposal was intended to lower borrowing costs for hotel developers and would not create public debt, pledge government revenues or assets, or provide a taxpayer guarantee.

The administration said the current owner of Frenchman’s Reef could use the financing structure to refinance and recoup its initial private investment in the property’s redevelopment through lower tax-exempt interest rates. Government House said the measure did not authorize a government purchase of the resort and would not change hotel operations, which it said are managed by Davidson Hospitality.

Under the proposal, bond payments and liabilities would remain the responsibility of the owner. Government House said that after the expected 30-year bond term is repaid, title to the property would transfer to the people of the Virgin Islands, after which the government could sell or lease the hotel through public processes.

The administration said it transmitted the proposal to the 36th Legislature for consideration. If enacted, the Public Finance Authority would establish the subsidiary and proceed with financing documentation.

Official source: https://www.vi.gov/governor-bryan-proposes-measure-to-bolster-hotel-development-in-the-territory/