Sandals Resorts to buy 4-star hotel in Grenada that closed

The Associated Press

ST. GEORGE'S, Grenada - Sandals Resorts International is buying and reopening a four-star hotel that recently closed in the eastern Caribbean nation of Grenada.

Jamaica-based Sandals founder Gordon Stewart says he will invest $100 million to convert the former La Source property of 100 rooms into a 265-room complex. He said late Thursday it will be renamed Sandals LaSource Grenada Resort & Spa. It's scheduled to open in early 2013 and become the 14th Sandals resort in the Caribbean.

The resort is located on Pink Gin Beach and is currently closed. It was heavily damaged by Hurricane Ivan in 2004 and didn't reopen until February 2008.