VICI Properties Inc. (NYSE:VICI) has recently made headlines as one of the best dividend stocks yielding at least 5% to buy according to hedge funds. The company announced its plans to expand its portfolio by acquiring the iconic Carambola Beach Resort in St. Croix, US Virgin Islands. This strategic move is part of VICI’s efforts to strengthen its Caribbean portfolio and enhance its market-leading destination assets.
The acquisition of the Carambola Beach Resort is accompanied by a long-term triple-net agreement with Club Med, signaling a planned redevelopment effort. VICI Properties Inc. is set to fund the comprehensive redevelopment of the 150 key properties, with the goal of transforming them to meet Club Med Exclusive Collection standards. The redevelopment is scheduled to begin in the summer, with a planned reopening in the fourth quarter of 2027.
Once renovated, the resort will become part of the Club Med Exclusive collection brand of premium all-inclusive resorts. This move aligns with VICI’s strategy as an experiential Real Estate Investment Trust (REIT) that owns and acquires market-leading destination assets, including casinos, hotels, and entertainment facilities. VICI acts as a landlord rather than an operator, collecting highly predictable rental income from tenants under long-term leases.
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In conclusion, VICI Properties Inc.’s acquisition of the Carambola Beach Resort marks a significant milestone in the company’s expansion strategy. By strengthening its Caribbean portfolio and aligning with Club Med’s exclusive collection brand, VICI is poised for continued growth and success in the real estate industry.
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