Delays requested for Palm Springs Virgin Hotel project

Developers hope for a 2025 grand opening

PALM SPRINGS, Calif. - It could be nearly 4 years before construction drawings for the Virgin Hotel project are even submitted to the City of Palm Springs due to delays. Grit development principal Michael Braun told KESQ's Brooke Beare Friday night the issues have to do with anticipated lawsuits regarding the prevailing wage.

A letter dated Oct. 26, from the developer's attorney to Palm Springs City Manager David Ready stated "both our capital partners and our lender for the Virgin have suspended the completion of financing until these uncertainties and their impact on Grit can be accurately assessed."

On Wednesday Grit is expected to go before the Palm Springs city council to ask for a 3 year extension to the Virgin Hotel project on Museum Way and Bellardo Road.

The 6 story, 142 room hotel was expected to open in 2022.  It was approved 3-2 by the city council in 2017. 

Braun said he hopes the city will approve the request to push the grand opening to 2025 so that Virgin will stay on board.

"Right now I have a management contract with Virgin that is for 40 years," said Braun.  So they have committed to Palm springs. If I don't get the development extension...and my entitlements from that, then Virgin could go somewhere else."

Braun says Kimpton's Rowan Hotel garnered 485 million positive media impressions last year, and the Virgin Hotel will create a billion media impressions for Palm Springs on opening.

"So in order to remain on the forefront, and be relevant, so that our consumers continue to come to Palm Springs, instead of going to different destinations, we need to create additional new experiences, so the Virgin Hotel would be such a new experience," Braun said.

Read the Planning Commission Staff Report:

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