Taj Hotels Resorts and Palaces has signed a memorandum of understanding to brand a 100-room hotel at the Nail Bay Resort on Virgin Gorda. The hotel will be Taj’s first in the Caribbean.

Nail Bay Resort currently consists of vacation villas on acreage that once was a sugar plantation.

The government of the British Virgin Islands has approved the development of the hotel, plus hotel spa suites, hotel villas, townhouses and residential villas.

Development plans also call for a spa, restaurants, bars, swimming pools, gift shops, boutiques and a jetty with 10 moorings.

According to a report in the BVI Beacon, construction probably won’t begin until 2011, with an opening targeted for 2013.