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Late Check In: The Palm Springs Virgin Hotel now set to open in 2022

Published August 1, 2018 5:18 PM

You’re going to have to wait a bit longer before the new Virgin Hotel is ready to open its doors in downtown Palm Springs.

The big project was initially set to open later this year, but construction has yet to begin and the hotel’s developers are still working to obtain the money to build it.

Still, there remains a lot of excitement about the Virgin Hotels brand opening a hotel in the Coachella Valley.

Michael Braun, President of Grit Development, formerly Wessman Development, says the property where the Virgin Hotel will be located is just a big construction pad now at the northeast corner of Belardo Road and Museum Way.

The original covenant recorded with the city in 2016, and provided to the News Channel 3 I-Team, had the new first-class hotel featuring 142 rooms along with several restaurants and bars.

That hasn’t changed, and Braun and the city both say the hotel development remains on track. The timeline has simply been pushed back.

The Virgin website still shows a 2018 opening. But Braun says he’s now hoping to pull a building permit here in two years from now in early to late 2020.

But Braun says he’s now hoping to pull a building permit here in two years from now, in early to late 2020. Braun said, “We need to first secure the financing before we can start the construction.”

Palm Springs City Manager David Ready says the Virgin Hotels dates still hold, and if they don’t the city council has the option of canceling financial incentives for the development.

Ready said the hotel is set to receive a city tax incentive of 75-percent of the Hotel tax there for 30 years.

Ready said, “The Dream Hotel, the Andaz, the Virgin, and potentially the Obierge. Those will all add to the complement of the different mix of hotels we have which is just as important when it comes to getting conventions to the city.”

There are a number of other factors slowing the project including the surrounding developments, financing, and a competitive construction climate around southern California.

Braun said, “It takes up to a year to secure the financing. Working with lenders, working with other people to get all the right documents together, to get the appraisals done. It takes a long time. That’s what people don’t realize.”

Braun says they’re still securing the capital to build the hotel, already alive on paper. Hiring a general contractor and subcontractors is also a challenge.

“The biggest problem along those lines right now is California is booming so it’s very difficult to find qualified workers and subs to work on the project,” Braun said.

Braun said the same to the city in an October communication where he cited both higher material and labor costs.

“Everything is getting more expensive,” Braun said. “Then you have to deal with the city which has been fantastic working with us. But whenever you make a change you have to go back to the city, get it approved. And governments just work sometimes a little bit slower. And we have to accept that. It’s the same in every city,” Braun added.

The Palm Springs Bureau of Tourism says there is no optimal, or magic number of hotels in the city, but the newest upscale hotels will bring in new business.

Bureau spokeswoman, Mary Jo Gunther, said, “All of those hotels will bring higher rates typically because they’re brand new hotels. Higher rates usually will translate to other hotels during those peak times.”

Braun said the Virgin Hotel will bring $30 million in new tax revenue to the city, new customers, and 200 jobs.

The I-Team repeatedly contacted Virgin for comment on the project, it’s commitment and timeline. But received no response.

Braun said Virgin Hotels is rapidly adding hotel properties to its holdings. It’s already opened hotels in Chicago and San Fransisco, and soon will be opening more in Dallas, Nashville, and New York.

Last week, Virgin also announced it is acquiring the Hard Rock Hotel in Las Vegas and converting it to the Virgin Brand where the huge guitar may be replaced with a big “V.”

Braun says Virgin Hotels will be shining in the next 24 months.

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