Jan. 04–ST. THOMAS — Dreams Sugar Bay St. Thomas Resort and Spa will be under a new name, and new management, with the start of the new year.
The AMResorts organization, which manages the Dreams brand, officially terminated its contract with the Sugar Bay Club and Resort Corporation at midnight on Dec. 31, according to AMResorts spokeswoman Jennifer Valdes.
"The Dreams brand will not be involved in the operation, management, marketing, sales and brand management of the resort in any way," AMResorts stated.
However, the change is not expected to affect the daily operations of the hotel for staff or guests, which will now be carried out under the Sugar Bay Club and Resort Corporation, according to Sugar Bay Resort resident manager Abdel Zouari.
"It's still the same experience, the same rooms, the same people running the hotel and the wonderful St. Thomas weather," Zouari said.
The separation was mutual, although Zouari only learned of the decision from corporate representatives earlier that week, he said. Zouari said he was not given a reason as to why Dreams decided to leave the hotel after having managed the resort for just over a year.
The changing of hands between management companies is frequent in the hotel industry, and the hotel is currently looking at another management company, according to Zouari. Zouari said he could not yet disclose the details of who might be managing the hotel due to contract requirements.
"This is normal in the hotel industry," Zouari said. "When everyone is in a win-win situation, that is when the management company stays. But the owner, the staff, management; Everyone has to be happy."
Sugar Bay Resort "had some trials" upon going independent in 2011 after having been managed by Wyndham Hotel Group for over 15 years, Zouari said.
The resort suffered between 2011 and 2013 when a number of breakdowns in the main air-conditioning unit led to a number of guest refunds and cancellations, and the resort's cash flow troubles led to issues with paying employees on time in the fall of 2012. Aimbridge Hospitality took over management in June 2013, with plans to invest about $10 million in the property.
The resort has since been under three different management companies over the last two years, and partnered with Dreams, a brand under luxury leisure company AMResorts, in July 2014.
Dreams' plans for the property under the idea of "unlimited luxury" included an all-inclusive package of premium accommodations, an Explorer's Club for Kids, a limitless gourmet food and beverage program, and daily entertainment. AMResorts also partnered with Pevonia skin care line to operate a spa on the property and planned to set aside and update 100 rooms as a "Preferred Club" category, said AMResorts spokeswoman Maite Velez-Couto in July.
There will be no change to the spa or to other physical aspects of the hotel, restaurants or kids' club with the exception of names in some cases, according to Zouari,
Sugar Bay Resort was the first and only U.S.-based Dreams resort, with other AMResorts properties located in Mexico, the Dominican Republic, and throughout the Caribbean, said Hotel and Tourism Association President Lisa Hamilton.
Hamilton said she does not expect any disruption of service at the Sugar Bay Resort and that she has not heard any complaints from guests or fellow hotel representatives with regards to the management switch.
Apple Leisure Group, the parent company of AMResorts, also owns Travel Impressions, a wholesaler that sells bridal and other getaway packages to guests, including the Dreams brand, among others.
However, the departure of AMResorts from the Virgin Islands is not likely to affect Travel Impressions' sales or bookings at Sugar Bay or the territory's other resorts, Hotel and Tourism Association President Lisa Hamilton said.
Sugar Bay Resort will still be honoring all weddings and reservations booked previously through Dreams, Zouari said.
"You can't get a Dreams-brand wedding but everything will be the same, except for it does not have the Dreams logo," Zouari said.
However, the severing of the relationship between Dreams and Sugar Bay Resort is a concern for the Department of Tourism, according to Commissioner Beverly Nicholson Doty.
"The area that potentially may have the most immediate impact would be the loss of revenue caused by cancellations," Doty said. "This is most applicable with visitors who are vested in the Dreams product and the specific experience aligned with the brand. We hope the majority of visitors with reservations at Dreams, especially at the height of our season are most committed to a USVI vacation experience and will not change their vacation plans to other Dreams properties in the region or in Mexico."
Zouari said customers who might cancel based on an ability to get the brand name likely make up a small portion of the market.
"I think those who are focused on brand name and who will seek to book elsewhere for the logo is probably not a major sector of the market, maybe like 5 percent will choose not to honor the booking," Zouari said.
Zouari said the hotel's primary focus remains on customer service.
"Our main concern is the client," Zouari said.
"We trust that the owners and management of Sugar Bay will do all feasible to maintain and enhance the amenities and experience at the property," Doty stated.
Representatives from AMResorts did not provide further comment.
– Contact Ashley Mayrianne Jones at 714-9130 or ajones@dailynews.vi.
