On a typical day in March, you’re likely to see dozens of residents and visitors making their way from the parking lot to the main beach at Caneel Bay — the only beach at the hurricane-damaged resort that is now accessible by car. The beach was reopened to the public in August 2024.
The beachgoers carry coolers, snorkel gear and chairs for the day’s outing. There are no amenities aside from three porta-potties and two garbage cans, but no one seems to mind. The beachgoers sit facing the sea, their backs only a dozen feet from the smashed glass and fallen timbers of the hotel that set the standard for understated luxury for 60 years.
The National Park Service is now in the early stages of the process of selecting a new resort developer for the property which was largely destroyed by hurricanes in 2017. Any company that wants to put in a bid had to submit a response to a Request for Qualifications by March 5.
The Source reached out to the National Park Service to find out how many companies responded to the Request for Qualifications but the NPS isn’t making that information public.
“The NPS has received RFQ responses and is in the deliberation phase; therefore, the name and number of respondents are not available at this time,” said Bill Stevens, chief of commercial service for Interior Region 2 of the NPS.
“The NPS will assess the responses based on the criteria requested in the RFQ [and] anticipates completing its review and issuing the Request for Proposals (RFP) this summer,” Stevens continued.
However, there are some clues about who might have submitted a response to the RFQ. To acquaint potential developers with the site, the NPS conducted a series of tours starting in November, and the Park Service did provide the Source with a list of 21 companies who went on those tours.
They are Amelia Global, Becker Capital and Finance, Bloomberg Philanthropies, Blurworkshop, Bullock Capital Partners, Capital Park SA, Caribbean Consultants, Carlisle Group, Consortium of Satoria Group SA, Coral Tree Hospitality, EDSA, ExplorUS, Gensler, Harith Productions, Hexagon Partners, Little Gem Resorts, Majestic Hospitality Group, Premier, Pure Hospitality, LLC, Studio Armin, LLC, J. Benton Construction, LLC and The Welles Group.
Some of these companies currently have business interests in the Virgin Islands. Some are well-known developers in the hospitality industry, while others are difficult to identify. It is also possible that other companies submitted responses to the RFQ but did not go on any site visits; also, some may have been omitted from the list given to the Source.
The Source reached out to several companies on the list of those taking tours. One company spokesperson confirmed submitting a response to the RFQ but said they wish to remain anonymous until the Park Service makes public those companies that have been invited to move on to the next phase.
Another on the list — Harith Wickrema of Harith Productions — told the Source he did not submit a response. He said he was interested in seeing the property as president of Island Green Living, a nonprofit organization dedicated to sustainability and resiliency. “There are wonderful natural resources there for composting and recycling, and there are things of value like metals,” he said.
The Source also reached out to Gary Engle, the managing partner of CBIA/EHI, the former holder of the Retained Use Estate (or lease) for Caneel Bay Resort. Patrick Kidd, his spokesperson, said, “We have not submitted a response to the RFQ process. I apologize but we are not able to share any other comment regarding the future of the Caneel Bay property.”
(For those who are not familiar with the history of the property, CBIA/EHI has had a contentious relationship with the Park Service in recent years. In 2022, EHI Acquisitions sued the U.S. Government over ownership of the land and its improvements. The V.I. District Court ruled in April that the resort and the 150 acres of prime beachfront land it sits on belong to the U.S. government, and while EHI has appealed that decision to the Third Circuit Court of Appeals in a case that remains ongoing, the NPS is moving ahead with the redevelopment.)
Potential developers follow up with questions
Those who did tour the property had many follow-up questions, and the National Park Service has published three lists of questions submitted along with the Park Service’s responses on their website detailing the RFQ process.
The links to these are listed below.
RFQ Q&A Batch 1 – Caneel Bay Lease
RFQ Q&A Batch 2 – Caneel Bay Lease
RFQ Q&A Batch 3 – Caneel Bay Lease
The Request For Qualifications states that the property available to a resort developer is 74 acres, only about half the size of the original resort property, although additional acreage may be negotiated. Other portions of the property will be reserved for day use by visitors and by the NPS for their purposes.
The NPS is now offering what it has called an “unprecedented” 60-year lease term for the lodging portion of the property.
Several times, potential applicants asked about the use of the dock at Caneel Bay, which has been declared unsafe. Officials responded that the lessee may have use of the dock if it pays for the repairs, but the management of the dock will remain under the NPS.
Many asked about the condition of the utilities on the property, including power generation and water distribution, but the Park Service responded, “The NPS has not done a full assessment of the utility systems.”
Others asked about the maximum square footage of the resort’s development. Officials said, “The NPS has not determined a maximum allowable footprint square footage for the redevelopment of the property.” Elsewhere, officials stated that no more than 166 bedrooms — the number of rooms formerly available — would be allowed on the property.
In response to a further question, officials stated, “The NPS desires to have the least amount of impact on the natural resources associated with the development of the property. Therefore, proposals that utilize existing developed areas will be viewed more favorably than those that seek to utilize undisturbed areas of the leased premises.”
One potential applicant asked whether it would be possible to substantially recreate Caneel Bay’s historic resort experience. The response was, “The NPS recognizes that given modern technologies, visitors expectations, and the (sic) Rockefeller’s intention that the property be open and available to the public, there is an opportunity to build on the original design and intention of the resort. We are asking developers, with their vast knowledge of the industry, to help us re-vision a resort that will meet the needs of the visiting public as well as the local community.”
Caneel Bay property, such as the sugar factory along the path to the public beach. (Source photo by Amy H. Roberts)
Potential applicants also asked about what they could expect about the public/community involvement in the review and approval process. The response was, “This information will be shared once it has been finalized.”
