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Riu's Decision to Buy the Radisson Blu St. Martin Raises A Lot of Questions

March 26, 2014 at 11:53 AM | by | ()

At the beginning of the Caribbean season, we told you about a cool opportunity to travel by boat from Princess Juliana Airport to The Radisson Blu in Anse Marcel on the French side of St. Martin.

Well, after only four years of operating under the Radisson Blu brand, the property has been bought by Riu Hotel & Resorts for $45 million and will undergo a name change to the Riu Palace St. Martin on June 1st.

While it has yet to be announced whether Riu will make any physical changes to the property, we do know that it will become an entirely all-inclusive resort under the new ownership. There was an all-inclusive option under Radisson, but it was not an all-inclusive property.

There are many questions that come as a result of this decision to go all-inclusive. Will the quality of food and service be the same? Will it attract the same type of traveler? Will it continue to be an upscale property despite the all-inclusive approach?

Another interesting thing about this purchase is that Radisson sold the property for only $45 million, after putting in a total of $90 million in renovations since it acquired the hotel in 2008. Since businesses don't sell below their investments for kicks and giggles, one has to figure Radisson was having a hard time selling rooms.

We'll continue to monitor any changes that result from the sale and check back in once we make a swing through to see them for ourselves.

[Photos: Will McGough/HotelChatter]

Archived Comments:

Is this a deal?

Just wondering if you book a stay for after June you will get the all inclusive at the current rate..