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A sketch of the proposed Virgin Hotel in downtown Palm Springs. (Photo: Submitted: Wessman Development Company)

Citing economic setbacks caused by the coronavirus pandemic, developers of the the proposed Virgin Hotel in downtown Palm Springs have “postponed” the project, city staff said during Thursday’s Palm Springs City Council meeting.

As a result, the hotel could be replaced with a 62-unit condominium complex, officials said.

“Grit Development and the Virgin Hotel developer have mutually agreed to postpone the project due to COVID-19 impacts on the national economy and on the hospitality industry specifically,” Assistant City Manager Marcus Fuller told council members. 

He added that they “have agreed to replace … existing hotel plans on that site with a residential project that will energize the downtown project.”  

The proposed 62-unit development was reviewed on Tuesday by the city’s Architectural Advisory Committee. It shares the same architect behind the Kimpton Rowan Palm