The upscale 565-room convention hotel, considered by many a flagship hotel in the Minnetonka-based Radisson Hotel chain, was built by Radisson founder Curt Carlson in 1970, his first step toward building a nationwide hotel empire. The Twin Cities' third largest hotel has operated as a Radisson ever since, even after it was sold for about $32 million eight years ago to LaSalle Hotel Properties.
"We expect it will open as a Sheraton in mid-March," says Mark Ricci, a spokesman for Starwood Hotels & Resort, a New York-based chain with 750 properties, including the Westin and Sheraton chains.
The move caught Twin Cities hotel experts a bit off guard. "It's a little surprising," says Pat Riley, a hotel consultant based in Minnetonka. "I'm sure Radisson hates to lose it," adds Steve Sherf, a hotel consultant with GVA Marquette Advisors in Minneapolis.
Tom Polski, a spokesman for Carlson Hospitality Worldwide, which includes the Radisson brand, says there was nothing he could say except that "it's the owner's announcement to make, and they haven't announced anything official yet."New York-based LaSalle officials declined to comment on the move. The Radisson South, located on the northwest corner of Interstate 494 and Highway 100, is one of LaSalle's 17 hotel properties totaling 5,600 rooms.
"Normally, owners make changes for two reasons-—either they think they can get more business or higher room rates, or they are disappointed in the way it is being managed," says Robert Mandelbaum, a hotel consultant with PDK Consulting in Atlanta.
Although Ricci says he did not yet know what his company plans for the hotel, some hotel analysts expect that it may get a significant renovation as part of the change. On the other hand, the switch from Radisson to Sheraton is a "lateral move," so few upgrades will likely be required, he says.
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