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VICI Properties Adds Club Med Resort to Experiential Growth Push
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Key Takeaways
VICI acquired Carambola Beach Resort and partnered with Club Med for its redevelopment.
VICI will fund the 150-key resort redevelopment under a long-term triple-net lease.
VICI's deal adds U.S. Virgin Islands exposure and steady rent, while leverage remains an offset.
VICI Properties Inc. (VICI - Free Report) recently announced that it acquired the Carambola Beach Resort in the U.S. Virgin Islands and joined forces with Club Med for its subsequent redevelopment. The hospitality REIT has entered into a long-term triple-net lease with Club Med, wherein it will fund the redevelopment. Club Med will handle the future operations of the elevated 150-key property.
Club Med operates around 60 premium resorts spanning across 40 countries on five continents. This partnership with VICI allows Club Med to return to the U.S. shores. Carambola Beach Resort is situated between a crescent beach and tropical rainforest in St. Croix. Club Med is redeveloping it to preserve the property’s natural beauty and historic roots and offer travelers an elevated design and personalized service.
The partnership benefits VICI Properties by expanding its experiential real estate portfolio with a premium resort asset in the U.S. Virgin Islands. The long-term triple-net lease with Club Med is expected to generate steady rental income while reducing VICI’s exposure to day-to-day operating costs.
Final Thoughts on VICI
VICI Properties continues to expand through repeat partnerships and adjacent experiential sectors. In first-quarter 2026, it provided a $1.5 billion mezzanine loan for One Beverly Hills and announced a pending Alberta casino real estate acquisition tied to PURE’s acquisition of Gamehost. These deals highlight VICI’s strategy of leveraging existing relationships for incremental growth rather than relying only on one-off acquisitions.
The above arrangement with Club Med strengthens VICI’s growth prospects through a partnership with a globally recognized resort operator with strong hospitality expertise. The redevelopment of Carambola Beach Resort could enhance the asset’s value, diversify VICI’s geographic presence and provide exposure to rising demand for premium leisure and destination-based travel.
However, concentration and financial leverage remain the key offsets to VICI Properties’ stable lease model. A softer demand backdrop or tenant-specific issues could constrain near-term valuation.
Over the past three months, this Zacks Rank #3 (Hold) company’s shares have fallen 2.2% against the industry’s growth of 7.1%.
The Zacks Consensus Estimate for PLD’s 2026 FFO per share is pegged at $6.18, which indicates year-over-year growth of 6.4%.
The consensus estimate for CUZ’s full-year FFO per share is pinned at $2.93, which calls for a 3.2% increase from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
View the Zacks #1 Rank List
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VICI Properties Adds Club Med Resort to Experiential Growth Push
Key Takeaways
VICI Properties Inc. (VICI - Free Report) recently announced that it acquired the Carambola Beach Resort in the U.S. Virgin Islands and joined forces with Club Med for its subsequent redevelopment. The hospitality REIT has entered into a long-term triple-net lease with Club Med, wherein it will fund the redevelopment. Club Med will handle the future operations of the elevated 150-key property.
Club Med operates around 60 premium resorts spanning across 40 countries on five continents. This partnership with VICI allows Club Med to return to the U.S. shores. Carambola Beach Resort is situated between a crescent beach and tropical rainforest in St. Croix. Club Med is redeveloping it to preserve the property’s natural beauty and historic roots and offer travelers an elevated design and personalized service.
The partnership benefits VICI Properties by expanding its experiential real estate portfolio with a premium resort asset in the U.S. Virgin Islands. The long-term triple-net lease with Club Med is expected to generate steady rental income while reducing VICI’s exposure to day-to-day operating costs.
Final Thoughts on VICI
VICI Properties continues to expand through repeat partnerships and adjacent experiential sectors. In first-quarter 2026, it provided a $1.5 billion mezzanine loan for One Beverly Hills and announced a pending Alberta casino real estate acquisition tied to PURE’s acquisition of Gamehost. These deals highlight VICI’s strategy of leveraging existing relationships for incremental growth rather than relying only on one-off acquisitions.
The above arrangement with Club Med strengthens VICI’s growth prospects through a partnership with a globally recognized resort operator with strong hospitality expertise. The redevelopment of Carambola Beach Resort could enhance the asset’s value, diversify VICI’s geographic presence and provide exposure to rising demand for premium leisure and destination-based travel.
However, concentration and financial leverage remain the key offsets to VICI Properties’ stable lease model. A softer demand backdrop or tenant-specific issues could constrain near-term valuation.
Over the past three months, this Zacks Rank #3 (Hold) company’s shares have fallen 2.2% against the industry’s growth of 7.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Prologis (PLD - Free Report) and Cousins Properties (CUZ - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for PLD’s 2026 FFO per share is pegged at $6.18, which indicates year-over-year growth of 6.4%.
The consensus estimate for CUZ’s full-year FFO per share is pinned at $2.93, which calls for a 3.2% increase from the year-ago period.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.