The New Brunswick government has sold the historic Algonquin Hotel and Resort in St. Andrews to New Castle Hotels and Resorts and Southwest Properties.

Tourism Minister Trevor Holder announced on Friday the provincial government is selling the resort and is providing a $21-million repayable loan to the companies. 

As part of the deal, New Castle Hotels and Resorts and Southwest Properties will ante up $4 million in contributions and incentives.

"The Algonquin Hotel and Golf Course has been owned by the provincial government for 40 years, and the iconic resort facility has served visitors for more than a century," Holder said in a statement.

"It continues to have enormous tourism appeal and potential. However, it is in need of refurbishment and a new marketing approach. The time has come to place it in the hands of an experienced team of new managers who have solid turnaround success credentials within the tourism destination industry."

The provincial government announced it was entering into negotiations with the consortium of companies in February.

The Tudor-style Algonquin hotel was built in 1889 by the St. Andrews Land Co. The hotel was once owned by the Canadian Pacific Railway Co.

The provincial government took it over in 1971.

David Buffam, the chief executive officer of New Castle Hotels and Resorts, said the companies are looking forward to take ownership of "his irreplaceable icon."

"Marriott has been our partner of choice in many projects over the years, and we are eager to see what is to come from the linkage of the strongest hotel brand in the world with a renewed historic resort," he said.

The provincial government began searching for a new owner for the hotel when its contract with Fairmont Hotels and Resorts expired last year.

When renovations are completed, the hotel and golf course will be marketed as a member of Marriott’s Autograph Collection.

New Castle Hotels and Resorts is responsible for six hotel properties in Atlantic Canada. 

Meanwhile, Halifax-based Southwest Properties is an active commercial and residential real estate developer in Eastern Canada.

The two companies have completed a Marriott Residence Inn in Moncton and a Hampton Inn & Suites in Dartmouth, N.S.