Mullet Bay Fourteen’s Tower B also exclusively being sold as luxury condos
MULLET BAY — Owner and managing director of Island Real Estate (IRE) team, Arun Jagtiani, in a candid conversation with StMaartenNews.com, explained the reasoning behind his email announcement on Wednesday, March 6, regarding the fact that Tower B of the Mullet Bay Fourteen two tower development project would no longer be developed as a hotel.
In his email newsletter Jagtiani had announced that “By popular demand, the developers of Mullet Bay Fourteen have officially announced that Tower B will no longer be developed as a hotel. Due to the success of the pre-sales in Tower A they have decided to continue with the same approach and pre-sell Tower B as luxury condos.” Jagtiani concluded his announced that they “expect this inventory to sell rather quickly”.
On December 17, 2017, then minister of VROMI, Christophe Emmanuel announced in a press release that developer Frank Teboul will be starting the construction of two 21-floor towers soon as the building permit had been approved and signed by him as the minister of VROMI.
Emmanuel expressed that this coming construction would be historical. “Not only will it create 170 employment opportunities, but it is a new chapter in how buildings are being built in the hotel section on Sint Maarten. Instead of constructing wide, we are constructing higher. It is also the hope that investors become interested in Mullet Bay once again.” the minister’s brief statement concluded.
Jagtiani explained that at the time the developer had a genuine intention to develop Tower B of the Mullet Bay Fourteen property, consisting of Tower A and Tower B, as a boutique hotel. The developer was in discussion with different hotel brands. At the time of Minister Emmanuel’s announcement, serious talks were being held with the Belmont Group, not to be confused with the Belmond Group which operates luxury hotel properties such as La Samanna resort in Lowlands, French Saint Martin.
Tower A, which consisted of 70 condos, was quickly being sold out in pre-sales while discussions between the developer and the hotel group was becoming complicated as requirements continued to be a point of discussion.
It should be noted that most hotel brands no longer build and develop their own properties. A developer has to develop a property and a hotel brand would come in and manage the hotel operations. Using this method with the stringent requirements they would have to live up to for the hotel management company, it would take decades for the developers to get back their monies invested.
With the complex requirements they would have to live up to on the one hand and the with the condo pre-sales going well on the other hand, it became obvious to the developer that they would make back their money quite easily with pre-sales. Therefore, the decision was made to put Tower B on the market as well via pre-sales and develop it solely as a property with luxury condos. “It would be the same design, the same development, just a different business model.” Jagtiani explained.
Worldwide in the hotel industry, developers are showing a preference for vacation rentals versus putting properties on the market as hotel inventories. According to Jagtiani many owners of the luxury condos in both towers will offer their units on the market as vacation rentals as well. “Therefore, the Mullet Bay Fourteen property will still serve as a tourism product.” Jagtiani concluded.
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Related news:
VROMI Minister Emmanuel: 21 floors Towers construction will be historical
