Sandestin Resort Set For Major Expansion

DESTIN, FL— Sandestin Golf and Beach Resort is undergoing a $400 million expansion which will include a pedestrian village— a signature product for owner Intrawest— which bought the Northwest Florida resort in July 1998. The purchase was part of a major expansion for Vancouver-based Intrawest, which owns 10 mountain resorts, including Whistler/Blackcomb in Canada, and Tremblant in Quebec. Sandestin, a 24,000-acre, 27-year-old resort located between Pensacola and Panama City, was Intrawest’s first warm-weather purchase, and marked the 11th property in its portfolio. Michael Stange, Sandestin’s vp/GM, said Intrawest’s purchase of the resort signified the first time it would be run by a developer/operator. Prior to that, it had only been run by those with a developer’s mentality, he said. “Intrawest doesn’t sell resorts, we operate resorts,” said Stange. This $400 million expansion, which includes not only the $172 million retail and residential Village of Baytowne Wharf, but the Grand Sandestin Hotel as well, will put the resort on par with the likes of Whistler or Tremblant, said Stange. The village, comprised of 42 retail, food & beverage and nightlife outlets, will bring a center to the resort, and will be aimed at keeping guests on property, rather than having them leave in the evening to find some place to eat, he added. The village will also include 650 residential units, as well as meeting space. Phase I of the village broke ground in August, and is set for completion in May 2002. Portions of the 76,000 square feet of retail space are included in Phase I, as are several residential buildings. The current phase of development also includes construction of The Grand Sandestin, a 150-unit hotel, set for opening in Spring 2003. In order to develop an aesthetic for the plantation-style hotel, and its accompanying conference center, the Sandestin team traveled to New Orleans, Hilton Head, Savannah, Key West, and Celebration, the Walt Disney-created town outside of Orlando. The $16 million, 60,000-square-foot Baytowne Conference Center is also set to open in Spring 2003. That addition will double Sandestin’s available meeting space, and, at 13,400 square feet, will feature the largest ballroom in Northwest Florida, said Stange. The new village will also feature Disney-style trams, he noted, adding that the resort “looked at Disney in terms of handling people.” All of these moves are aimed at pulling in more share of the group market. The resort currently skews 60% leisure, 40% group. The goal is to reverse that. “This will enable us to go after the incentive and meetings market better,” said Paul Wohlford, vp/sales and marketing for Sandestin. All together, the area around Sandestin is set for a revival, said the executives, noting that the FAA has approved a new airport for Panama City, which will open in four years. And indeed, the overall area is trying to change its moniker of Florida’s Panhandle, to “the Great Northwest Florida area.” That resurgence is something the resort welcomes, they noted. “Sandestin has been the best kept secret for awhile, but we are done with that,” said Wohlford.