VIRGINIA BEACH, Va. – The restoration and construction of the Historic Cavalier Hotel and its two sister hotels have paid off, according to Gold Key PHR, the resort’s developer.
In a report submitted by Gold Key PHR to the Virginia Beach City Council, the following details were shared:
- The hotel renovation took five years to complete and cost $85 million, which was $35 million over budget.
- After the renovation efforts were completed, the Historic Cavalier Hotel reopened, 81 Cavalier residences were sold, the Marriott Virginia Beach Oceanfront opened, all 35 units of the 42 Ocean luxury condos sold and Embassy Suites by Hilton Virginia Beach Oceanfront opened.
- The city’s $18 million investment was recovered by 2021 “in new ‘but-for’ taxes.”
- Nine top-rated restaurants are in business, and 900 new hospitality jobs were created.
This year, the Historic Cavalier Hotel and its two sister hotels are projected to generate $9,520,360 in city tax revenue, according to Gold Key PHR’s report.
When Gold Key PHR initially bid on the entire Cavalier Hotel in 2013, the property was struggling. The report says the court ordered the sale of the “dilapidated” property amid a “family ownership dispute.”
Bruce Thompson, CEO of Gold Key PHR, said the successful restoration and favorable financial projections are a “stunning turnaround.”
“My partners cared deeply about preserving this hotel, not realizing the magnitude of that undertaking initially,” said Thompson. “In spite of the cost overruns, the partners committed to invest tens of millions to bring it back to its original grandeur in a way that would not only make the community proud, but continue to elevate the Virginia Beach Oceanfront as a tourist destination. We’re very proud of our work, and extremely proud to make this presentation to Virginia Beach City Council.”
Gold Key PHR expects the hotels to pour $9.5 million into the local economy on an annual basis.
