VICI Properties and Club Med Acquire and Redevelop Carambola Beach Resort in St. Croix Hospitality Real Estate Deal

VICI Properties Inc. (NYSE: VICI) and Club Med announced June 15 the acquisition and planned redevelopment of the Carambola Beach Resort in St. Croix, U.S. Virgin Islands, in a hospitality real estate transaction that will bring the global all-inclusive brand back to U.S. soil.

Under the terms of the transaction, VICI Properties acquired the 150-key resort and entered into a long-term triple-net lease with Club Med. VICI will fund the redevelopment of the property, elevating it to Club Med's Exclusive Collection standards, while Club Med will operate the resort upon completion. Financial terms of the transaction, including the purchase price, cap rate, and total redevelopment budget, were not disclosed.

Construction is expected to begin in summer 2026, with a targeted reopening in the fourth quarter of 2027.

A Historic Asset Repositioned for Premium All-Inclusive Hospitality

The Carambola Beach Resort was originally built in 1986 by Laurance Rockefeller, whose vision centered on balancing hospitality with environmental preservation. The property is situated between a crescent beach and tropical rainforest. Club Med's redevelopment plans call for a comprehensive renovation that the company says will preserve the property's natural character while upgrading it to the Exclusive Collection tier — the brand's most premium all-inclusive portfolio, characterized by elevated design and personalized service.

VICI Properties is an S&P 500 REIT whose portfolio spans 101 experiential assets, including 61 gaming properties and 40 other experiential properties across the United States and Canada, encompassing approximately 130 million square feet and more than 66,000 hotel rooms. Its tenant roster includes operators across gaming, leisure, and hospitality sectors, with Club Med now added alongside partners such as Canyon Ranch, Great Wolf Resorts, and Kalahari Resorts.

The triple-net lease structure — under which the tenant assumes responsibility for operating costs, taxes, insurance, and maintenance — is consistent with VICI's broader portfolio model.

Club Med's Return to U.S. Shores

The St. Croix project marks Club Med's reentry onto U.S. soil. The brand, founded in 1950 and operating nearly 60 resorts globally across 40 countries, has long served North American travelers at international destinations. The Carambola redevelopment is intended to attract travelers from the U.S., Canada, and around the world seeking premium all-inclusive experiences in the U.S. Virgin Islands.

"The U.S. Virgin Islands represent an exciting new chapter for Club Med," said Carolyne Doyon, President and CEO of Club Med North America and the Caribbean. "For more than seven decades, we've welcomed North American travelers to our destinations around the world, and now we're bringing that experience back home. With St. Croix's natural beauty, strong community spirit, and deep cultural roots, together with the longstanding legacy of this hotel, this project reflects our vision for thoughtful growth, and meaningful connection across the Americas."

John Payne, President and COO of VICI, said the partnership aligns with the REIT's approach to working with established experiential operators. "We are very excited to begin our partnership with Club Med, a true pioneer of the premium all-inclusive resort experience and the brand leader in the category," Payne said. "Club Med's approach to growth aligns directly with how VICI partners with best-in-class experiential operators, and Carambola Beach Resort is an ideal asset to launch our relationship."

Economic Impact and Sustainability Targets

The redevelopment is projected to generate approximately 200 direct jobs upon completion, with at least as many indirect employment opportunities anticipated through partnerships with local excursion operators, service providers, farmers, and artisans, according to the announcement.

U.S. Virgin Islands Governor Albert Bryan Jr. cited the project as a milestone for St. Croix's economy. "The arrival of the Club Med brand to the U.S. Virgin Islands marks another significant milestone in the continued economic growth and revitalization of our islands — particularly St. Croix — where tourism remains a key driver of opportunity and investment," Bryan said.

Club Med has indicated the project will target BREEAM and Green Globe certifications, in alignment with the brand's Happy to Care sustainability program. The company said it plans to engage further with the local community in the coming months to share additional project details.

VICI Properties noted that it looks forward to opportunities to support Club Med's continued growth across North America, suggesting the partnership could extend beyond the St. Croix asset.

Sources

VICI Properties Investor Relations — June 15, 2026