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Virginia Investments Trust Developing The $110 Million
255-room Sanctuary at Kiawah Island
By John P. McDermott, The Post and Courier, Charleston, S.C.
Knight Ridder/Tribune Business News 

Jun. 25--KIAWAH ISLAND, S.C.--After years of preparation and speculation, Kiawah Island Resorts unveiled plans for a $110 million oceanfront hotel Monday that it vowed would rank among the finest upscale leisure properties in the country. 

The 255-room Sanctuary at Kiawah Island, the costliest hotel ever built in South Carolina, is set to open in February 2004, said Prem Devadas, managing partner of Kiawah Island Resorts. 

The four-story hotel will include a full-service day spa, two restaurants, a $3,000-a-night presidential suite measuring nearly 3,000 square feet, and unobstructed views of the Atlantic Ocean from almost everywhere. 

"The Sanctuary is going to take Kiawah ... to another level that most resorts don't see," Devadas said. He added that the island is now poised to become "the Pebble Beach of the East Coast," referring to the famed seaside golf resort near Carmel, Calif. 

"We have paid particular attention to the design of the hotel, which we hope will create a timeless and elegant experience," Devadas said. "The name that we have chosen is a fitting tribute to the extraordinary natural beauty for which Kiawah is known." 

The hotel will create 500 permanent jobs, while the construction will require about 700 workers. Guests are projected to spend roughly $50 million in the surrounding communities during the first full year of operation, Devadas said. In addition, the property is expected to generate more than $1.5 million in tax revenue. 

"The Sanctuary ... will become one of the state's and Lowcountry's most important assets," says Charleston Mayor Joseph P. Riley Jr. "Not only will the hotel offer guests a level of luxury not seen in this state before, but it will prove to be a major attraction for businesses when deciding whether to relocate to this area." 

The resort's owner, Richmond-based Virginia Investments Trust, has major expectations for the Sanctuary: It plans to earn five-star and five-diamond status from Mobil and AAA, respectively, within two years of the opening. 

That would be a first for South Carolina. 

"That's a lofty goal," Devadas said, "but we have done it before." Richmond's Jefferson Hotel, which is owned and operated by Kiawah's corporate parent, is among just 19 properties in the country that can boast both coveted travel distinctions. 

What sets hotels like the Jefferson apart from the rest of the pack is "superior service," Devadas said. The Sanctuary will be no different, he said. 

"We will commit to having the finest employees who are going to cater to every whim of the guests," Devadas said. 

The hotel's sweeping ocean views are a big selling point. To that end, workers have trucked in tons of dirt to the site to create an elevated lobby. 

"When you walk in the front door you can see the ocean. ... That's very rare for a hotel in this country," he said. 

The property will incorporate the classical and historical flavor of nearby Charleston, using stone, stucco, wood, slate, ironwork and brick, the resort said. The interior décor has been developed from traditional island designs found in the British West Indies, combined with elements of the South. 

Workers will create an avenue of live oaks by transplanting 80 50-foot-high trees. 

"When you arrive you'll feel like it's been here for ever," Devadas said. 

Most rooms and suites at the Sanctuary will fetch $275-$525 a night, depending on the season, and are larger than those found at most other luxury hotels, Devadas said. The average size is 520 square feet; by contrast, the typical room at the Ritz-Carlton at Florida's Amelia Island measures 406 square feet. 

The hotel also will have a 110-seat fine dining room with a private wine room and a 160-seat casual eatery, both with ocean views. Other amenities include a full-service luxury spa with 13 treatment rooms, a salon, pools and 18,000 square feet of space for meetings, parties and other functions. 

Kiawah Island Resorts has been planning to build a new hotel for at least eight years, but design changes, permitting snags and other issues have delayed construction. 

"This has been a project long the making," Devadas said. 

Bill Goodwin, the bottom-line oriented Virginia billionaire who along with some other buyers purchased the resort in 1993, noted it will take many years to recoup the $110 million investment. 

"I suppose from a business point of view it's not going to go down in history as the best business venture we've ever done," Goodwin said as he gazed over the Atlantic Ocean. 

But The Sanctuary is not just another real estate investment, he added. 

"Our family has enjoyed and benefited from South Carolina," he said. "This is a little bit of a return for that." 

-----To see more of The Post and Courier, or to subscribe to the newspaper, go to http://www.charleston.net 

(c) 2002, The Post and Courier, Charleston, S.C. Distributed by Knight Ridder/Tribune Business News. 


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