Province spent more than budgeted on Algonquin renovations - Jul. 02, 2014
The province invested $30 million in the renovations to the Algonquin, according to Premier David Alward, which is $9 million more than originally anticipated.
The premier mentioned the $30 million figure during the official reopening ceremonies but when the hotel was sold to Southwest Properties and New Castle Hotels and Resorts in 2012, the province said it would be providing a $21 million repayable loan to operate, restore and rejuvenate the property while the new owner would pay up to $4 million in equity contributions and incentives.
Transportation and Infrastructure Minister Claude Williams, who was not in attendance at last week’s ceremonies, said the renovations to the hotel turned out to be more work than first anticipated.
“This is not uncommon when dealing with the restoration of old buildings. The Algonquin also had to meet the requirements of the Marriott brand for a signature hotel.
“Both the private sector partner and the province increased their investment in the property to make sure the project was completed as required.”