Although earlier reports suggested that the closure of the 290-room Grand Beach Palace resort on St. Thomas on Aug. 22 would be temporary it will in fact be permanent according to Luis Entrala Fabregas, the hotels general manager. Mexico-based Palace Resorts acquired the 26-acre resort last November from CTF St. Thomas Corp. for $9.75 million and converted it into an all-inclusive operation.
According to Palace Resorts sources they had planned a US$12 million renovation project and said it would seek tax benefits from the V.I. government.
The closure will see some 300 employees out work.