23 February 2011

Future of Landmark N.B. Resort
Up in the Air

St. Andrews New Brunswick - The future of a landmark hotel in the Maritimes with a guest list that has included luminaries from Canadian politics, a U.S. president, and a glamorous princess is up in the air.
 
The New Brunswick government says the Fairmont hotel chain will not renew its contract at the end of the year to manage the historic Algonquin Resort in St. Andrews.
 
Tourism Minister Trevor Holder said Wednesday the province will find a real estate firm that specializes in marketing, selling, and leasing resorts to look at all options for the Algonquin's future.
 
The Tudor-style hotel, which also boasts a golf course, opened in 1889. The province leased the hotel in 1973 and bought it in 1984.
 
Holder said the hotel needs between $15 million and $20 million in renovations and repairs.
 
"That, obviously, is not something in this fiscal climate that we can handle as a province and we're going to need some private-sector help," he said.
 
The government has suggested during pre-budget talks that selling it could be a way to help tackle the province's deficit.
 
The hotel's website says its guest list has included Sir John A. Macdonald, Theodore Roosevelt, comedian Bill Cosby, and Diana, Princess of Wales.
 
Dave Armstrong, the president of Enterprise Charlotte, an economic development agency for Charlotte County, said the resort's continued operation is important to the area.
 
"The Algonquin hotel is a part of our history, it's a part of our culture, it's one of our last beautiful resorts in Canada, and it plays a significant role in the prosperity of our region."
 
It's estimated the resort generates between $4.5 million and $6 million a year in spin-off revenue for the area each year.
 
Armstrong said it's unfortunate the provincial government hasn't invested in the property, adding that the last significant upgrade was the addition of a wing about 20 years ago.
 
"Not much has been set aside for renovations in the past 10 years and, unfortunately, it's showing its age and it does have to have some work done to it," he said.
 
When it opened, the four-storey building with a castle-like facade had 80 guest rooms. Its saltwater baths became an attraction as well as its views overlooking the Passamaquoddy Bay, where the water was drawn and held in tanks in the building's attic.
 
The Canadian Pacific Railway Co. bought the hotel in 1903 and it was sold to local owners in 1970.
 
"This is the catalyst for economic development and tourism in this community and entire region," said Tim Henderson, town manager for St. Andrews.
 
He said tourism figures for the area have been strong over the last few years and the community has worked hard to attract some large events.
 
"We need a facility such as this to be able to house the types of numbers we're talking about bringing in all at one time," Henderson said.
 
Holder said he would like a new operator in place before the end of the year and he guaranteed the resort will remain open even if one isn't ready to take over when Fairmont walks away.
 
"We're making contingency plans to make sure that this facility still operates come the first of the year," he said.
 
The resort employs 60 people year-round and 250 during the tourism season.
 
It is not the only resort in the region to face questions about its future.
 
The Nova Scotia government is looking for ideas to ensure the continued operation of Digby Pines, Keltic Lodge, and Liscombe Lodge. Four companies have expressed interest in the three provincially owned resorts, which need upgrades that could run anywhere from $11 million to $22 million.
 
Kevin Bissett.