Though the lease, by Sagicor, comes to an end on May 31, 2010, both parties said the extension agreement was reached without animosity.

"SRI has enjoyed a good relationship with the owners," read a release issued jointly.

"The decision to vacate was amicable, as evidenced by a statement from Sandals issued last weekend which was shared with and agreed to by the owners," the statement continued.

Smooth transition

SRI and Sagicor said they were looking forward to a smooth transition and handover of the Dunn's River property next year.

Sandals said initiatives such as the recent purchase of the Emerald Bay property in the Bahamas, formerly operated by Four Seasons, and the introduction of River Suites at Sandals Negril and Sandals Royal Caribbean were indications of the resort chain's health.

Among SRI's other projects to come on stream are the construction of Sandals City in Kingston and the renovation of the Dragon Bay Resort in Portland.