The pool and patio at Sandals Dunn's River, Jamaica. - Contributed

Sandals Resorts International is to cease operating the 256-room Sandals Dunn's River Hotel in Mammee Bay, St Ann, in six months.

The owner of the property, Sagicor Pooled Investment Fund Limited, says the lease now being enjoyed by Sandals will not be renewed when it expires on May 31, 2010.

"The operating lease with Sandals ends in 2010 and is not likely to be renewed. The owner of the property, Sagicor Pooled Pension Fund, is inviting select parties to consider this opportunity to operate this unique property with a proven track record of over 19 years of successful operation," said a statement from Sagicor.

Under the current agreement, the hotel was leased for 11 years to Mammee Bay Hotel Limited, from June 1, 1999, with options to renew for two successive terms of five years. The current lease expires at the end of May next year.

No comment

Sandals' director of corporate communi-cations, Rachel McLarty, told The Gleaner Friday afternoon that the company would respond to enquiries by the newspaper at the appropriate time.

An end to the lease arrangement would mean that the number of hotels being operated by Sandals in Jamaica under the Sandals and Beaches brands would fall to nine. The hotels are situated primarily along the island's main tourism areas of the north coast as well as in non-traditional resort spots such as Whitehouse in Westmoreland.

The announcement comes at a time of global economic downturn which has affected tourist travel worldwide. And although Jamaica has managed to maintain relatively high tourist arrival figures, earnings are down considerably as hotels have been forced to discount room prices heavily.

At the same time, the country is making forays into the European market to shore up earnings.

Meanwhile, it is unclear what the fate of the approximately 250 workers at Sandals Dunn's River will be.

Sandals Dunn's River occupies a 20-acre seaside spot along Jamaica's north coast. The original hotel's structure was built in 1959 and has operated under different names since then.

Originally called Arawak hotel, it has also been named Hilton Hotel and Eden II.

It was purchased by Sagicor Life Jamaica Limited in 1989 and after extensive rebuilding and refurbishing to modernise the property, it was leased to Sandals.

In 2006, Sagicor again spent US$15 million to refurbish the hotel, with guest rooms, public areas and grounds receiving particular attention.

Popular

Since it has been under Sandals' control, the property has enjoyed much popularity as part of the hotel chain's all-inclusive group of hotels in the Caribbean.

Since 2000, the hotel has averaged 75 per cent occupancy levels, grossing some US$259 million.

The property received the Apple Vacations' Crystal Award for Best All-inclusive Hotel in 1994 and 1995, the Bronze Award as Favourite Resort in the Caribbean by the Official Hotel Guide Readers' Choice Award in 1995, among others.

Its rates are at the higher end, similar to those at its sister property Sandals Negril Resort and higher than properties such as the 850-room Riu Club Hotel located on the adjoining property, and Breezes Runaway Bay, run by the SuperClubs chain, both in the same Ocho Rios/Runaway Bay resort area.