Three derelict hotel buildings off Esterley Tibbetts Highway are getting converted into a creative campus with work spaces, hotel rooms, an event space, shops and gardens.
The Central Planning Authority has granted planning permission for the “repurposing” of part of the former Hyatt resort – a process which is expected to take two years.
Palm Sunrise, the operators of luxury resort Palm Heights, will develop and run the new facility in Grand Cayman, which will be accessible to both residents and visitors.
The current site features five buildings, constructed in the 1980s, which were home to the Hyatt before being seriously damaged during Hurricane Ivan in 2004.
Dart Enterprises purchased the property in 2016, along with the old Beach Suites and the Britannia golf course.
Complete redevelopment is expected to take place in two phases.
So far only the southwest phase – consisting of redevelopment of three buildings, a new covered entrance, six pavilions and 154 parking spaces – has been given planning permission.
In a letter submitted with the plans, Palm Sunrise spoke of “repurposing the shells of the existing buildings, which still hold structural integrity” with some design improvements.

The three buildings, sitting on a 7.3-acre plot, are two storeys, four storeys and five storeys tall. The latter two will be increased by one storey each within the existing roof line.
Facilities will include 16 hotel rooms and a range of “small, turn-key collaborative workspaces” such as photography, music and exercise studios, and exhibition spaces.
“There is increasing demand from the fashion, arts, cultural and technology (FACT) industries for spaces to collaborate, practice and exhibit their work,” Palm Sunrise said.
“The new amenities are designed to meet the needs of this sector.”
It added that the development project is expected to create new jobs in hospitality, wellness and property management.
Site zoning questions
During the meeting on 21 June when the proposal was discussed, the planning authority questioned the use of the site, which is zoned as ‘hotel tourism’, for work spaces.
The Development and Planning Regulations 2022 say that only hotels, cottage colony developments, and apartment buildings or townhouses are permitted in the zone.
However, the authority may allow certain cases of unrelated development.
Alex Russell, director of development company RDC, Palm Heights general manager Leonardo Mariotti and structural engineer Denis Murphy appeared for the applicant.
Russell explained that the building frames have inherent value and Palm Sunrise wants to build sustainably and reinvent the property to create a best-in-class facility.
The concrete floors and ceilings will be exposed in the heavily glazed development, which will consist of 52.9% hotel guest areas, 12.9% retail and 34.2% co-worker spaces.
Lessons will be learnt during the phase one build which will be applied to phase two and the redevelopment of the remaining two buildings, he added.
Mariotti told the authority that the development would attempt to meet the increasing demand for a different type of experience.
He said the work spaces will be fluid, forward-thinking and creative, and may change between uses, while the 14 hotel rooms will be New York-loft style.
In the minutes of the meeting, published on 6 July, the planning authority granted permission for the resort redevelopment with conditions.
It said: “The mix of retail, offices, hotel rooms and related facilities provides a balance of development that is consistent with the provisions of [the planning regulations].”
The conditions included submitting additional plans and drawings as well as complying with certain building practices.
There were no public objections to the plans.
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I was blessed to work at the Old Hyatt 92-94… we were so proud of our property! No, we were not right on SMB (save Hemingways), but our grounds, staff, and connection with Brittania Villas/Golf made Hyatt THE destination hotel… I last visited in 2020 (right before you-know-what), and was heartbroken to see the grounds again. Wifey and I will return again to my beloved Cayman at the end of this month! I cherish the memory of my time there!