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Sandals and Sagicor Life Jamaica have decided to part ways. Sandals next July will cease managing the 256-room Sandals Dunn's River Hotel in Mammee Bay, St. Ann. The two companies issued a joint press release on the decision. Sagicor is actively seeking a hotelier to manage the property, whose official lease to Sandals ends on May 31. The announcement brings to nine the number of hotels being operated by Sandals in Jamaica under the Sandals and Beaches brands.

In local Jamaican press reports Sandals is denying that the move was made in response to the current economic situation by pointing out that the company recently acquired Emerald Bay in the Bahamas from Four Seasons. Sandals also cited other investments in existing properties, such as the new River Suites at Sandals Negril and Sandals Royal Caribbean. In addition, the company is constructing Sandals City in Kingston and renovating the Dragon Bay Resort in Portland. Located on Jamaica’s northern shores, the hotel has been in operation since 1959 and has undergone several name changes, modernizations and renovations subsequently. Sagicor purchased the hotel in 1989 and in 2006 invested $15 million in renovations.

“After 15 years of successful partnership and in an amicable arrangement, Sandals Resorts International has decided to terminate its lease with the owners of the Sandals Dunn’s River Villaggio Golf Resort & Spa property in Ocho Rios, Jamaica on May 31, 2010,” Sandals said. “Sandals Resorts International chooses an ownership strategy as a whole, and as such the Sandals Dunn’s River lease no longer fits our current business model. We continually strive to improve our products for consumers and therefore require the flexibility to implement changes without restrictions and to improve, upgrade and maintain our resort product on an ongoing basis. This was not possible under our current lease terms at Sandals Dunn’s River and was the guiding reason behind our decision.”

Guests scheduled to stay at Sandals Dunn’s River following July 31, 2010 will have the option to change their booking to any like accommodation at other Sandals Resorts in the Caribbean without penalty or change fees. Airline change fees may still apply if guests change to another destination or change travel dates. Call 866-498-3218 or visit Sandals Website.