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HomeNewsLocal newsAfter 20 Years, PFA Sells Christiansted’s King’s Alley Hotel for $3.65 Million

After 20 Years, PFA Sells Christiansted’s King’s Alley Hotel for $3.65 Million

The King’s Alley Hotel in Christiansted (Image from the King’s Alley Hotel website)

Gov. Albert Bryan Jr., in his capacity as chairman of the V.I. Public Finance Authority, has signed off on the documents finalizing the sale of Christiansted’s King’s Alley Hotel for $3.65 million, according to a Government House news release.

A company named Neighborhood Establishment has reportedly purchased the hotel and the undeveloped property next to it. According to Government House, the company plans to develop the property, along with the King Christian Hotel into a major enhancement to the Christiansted Boardwalk.

In 1995, the PFA loaned $3 million to Development Consultants to renovate the King’s Alley area of downtown Christiansted. The PFA acquired the 21-room hotel in 2001 after Development Consultants defaulted on what had grown to a $4.3 million debt. It invested several million more dollars to try to eventually sell it for a profit. It owned the hotel for the next 20 years.

King’s Alley Hotel was run by King’s Alley Management Inc. According to Government House, KAMI operated and managed the King’s Alley Walk and Hotel for several years and had a total of five full-time employees and three part-time employees.

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Once fully renovated and integrated, the Kings Alley Hotel is projected to become part of the King Christian Hotel and feature more than 100 hotel rooms, eight food and beverage and retail outlets, event space, a pool, courtyard, 27 parking spaces and two boat docks accommodating 20-plus vessels.

“Neighborhood Establishment presented a fantastic plan that not only will beautify the already picturesque Boardwalk, it also will greatly enhance the appeal of Christiansted and the entire island of St. Croix as Tourism destinations,” Bryan said in the release.

The Government House release says the renovations to both the King Christian and King’s Alley hotels is estimated to generate 150 construction jobs and 100 full-time positions among the various properties, restaurants, and retail establishments.

“This sale, in addition to the renovation of the King Christian Hotel and recent openings of the Grape Tree Bay and Divi Carina Bay Hotels, and the planned redevelopment of Hotel on the Cay all contribute to a resurgence of the hotel industry in St. Croix not seen since before Hurricane Hugo in 1989,” Bryan said.

The adjoining Anchor Inn property was acquired by the Public Finance Authority in 2011 for $614,000 and consists of a vacant lot with historical structures.

Both properties were appraised in 2019 for $3,564,000 (Kings Alley at $2.95 million and Anchor Inn at $614,000), and the Public Finance Authority received a number of solicitations from interested parties who wanted to either purchase or lease the properties.

According to the release, after conducting a market study, the Public Finance Authority issued a solicitation for proposals in June 2021, which was sent to 18 companies and individuals that had previously expressed an interest in purchasing or leasing either or both properties and/or who operated nearby hotels and inns. The Public Finance Authority received only one proposal, from Neighborhood Establishment for the purchase of both properties.

Neighborhood Establishment’s proposal was vetted by a committee that included a financial advisor and industry professional with more than 30 years of experience in St. Croix’s hotel and hospitality industry.

In addition to Neighborhood Establishment’s plans for the construction of additional rooms at the Anchor Inn Site and proposed renovations of the King’s Alley Hotel’s guest rooms, the developer has reportedly transitioned all employees from KAMI to Neighborhood Establishment at the same or higher salary with additional benefits not offered by KAMI.

Gov. Albert Bryan Jr. and Rino Cassinelli of Neighborhood Establishment sign the closing agreement for the sale of the King’s Alley Hotel while Budget Director Jenifer O’Neal (left), Public Finance Authority Executive Director Nathan Simmonds and Finance Commissioner Bosede Bruce (center) look on. (Government House photo)
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