Brokers in a position to know tell GlobeSt.com the new owner plans to demolish the 26-acre property at 105 Bayshore Dr. and redevelop the landmark site into condos, hotels and a new spa. But Olympia Development president William Touloumis says only cosmetic changes are planned for the resort.

MeriStar, which owns 73 full-service hotels totaling 20,319 rooms in 22 states, sold Safety Harbor Resort & Spa as part of its continuing disposition program. "This is an excellent property with interesting redevelopment potential but it did not fit our long-term strategy of owning larger, branded properties in major markets with high barriers to new competition and significant growth potential," says MeriStar chairman and CEO. Paul W. Whetsell.

MeriStar sold 36 hotels in 2003 and 2004 for cash proceeds of $284 million. The Plascencia Group of Tampa represented MeriStar in the sale.