Algonquin hotel to remain open: minister

Tourism Minister Trevor Holder is reassuring people in St. Andrews that the Algonquin Hotel will remain in operation.

The New Brunswick government says the Fairmont hotel chain has decided not to renew its contract to manage the historic Algonquin Hotel and golf resort in St. Andrews.

Holder said Wednesday the contract with Fairmont Raffles Hotels International expires Dec. 31.

Holder said the province will now find a professional real estate firm that specializes in marketing, selling and leasing resorts to look at all options for the Algonquin's future.

"By investigating these options we have a single objective, to ensure that the Algonquin will remain what it is, an icon for St. Andrews and the province of New Brunswick."

The hotel needs up to $20 million in upgrades and together with the Algonquin golf course lost almost $2 million in 2009.

It also employs 250 people in peak season and generates up to $6 million a year for the local economy.

The province leased the Tudor-style hotel in 1973 and bought it in 1984. It originally opened in 1889.

During pre-budget talks, the government suggested that selling it could be a way to help tackle the deficit.

The hotel's website says the guest list has included Sir John A. Macdonald, Theodore Roosevelt and Princess Diana.