Carlson Hotels Worldwide announced a major strategic expansion in the Caribbean with the acquisition of a premier beachfront resort property in French St. Martin with plans to transform it into a showcase Radisson Resort and Spa in 2006.

Jay Witzel, president and CEO of Carlson Hotels Worldwide and CEO of Carlson Cruises Worldwide, said the company has acquired L`Habitation de Lonvilliers Resort (formerly the Le Meridien) on the French side of St. Martin. The company is investing a lot of money for the acquisition plus extensive renovations and new construction which will create the new Radisson St. Martin Resort and Spa. The current resort operation is expected to be closed for construction work in early 2006 and reopen as the Radisson prior to the year-end holidays in 2006.

The addition of the Radisson St. Martin Resort and Spa will complement our current showcase resort in the Caribbean, the Radisson Aruba Resort & Casino, as we pursue an expansion strategy of offering destination resort properties in key Caribbean markets, Witzel said.

Carlson acquired the property from the French company SOFRAPAR, owned by Mr. Simon Smadja in conjunction with Banque Populaire Val de France. Mr. Smadja also owns C.I.E.C. Engineering, which has been retained to oversee all of the engineering, design and construction work on the Radisson St. Martin Resort and Spa. C.I.E.C. Engineering has extensive experience in project management in the hospitality industry including the recently completed Radisson SAS Paris Boulogne and a Radisson SAS hotel under construction in Marseille, France.