Nova Scotia puts Digby Pines, Liscombe Lodge resorts up for sale, again

Nova Scotia is again trying to unload the last two provincial government-owned resorts, but how much they fetch — if anything — is unclear.

Its own appraisal says the Digby Pines Golf Resort and Spa and Liscombe Lodge Resort and Conference Centre are, literally, worthless.

"We do know there is a substantial infrastructure deficit that will require some major investments," said Nova Scotia Premier Stephen McNeil.

This week, Nova Scotia issued a request for proposals seeking a real estate agent to sell the stately Digby Pines resort in Digby and Liscombe Lodge on the Eastern Shore.

The tender says in 2012, when the province first tried to sell the resorts, a fair market value appraisal was completed by Altus Group Ltd. The value of those properties was "determined by the appraiser to be NIL — $0 for Digby Pines, $0 for Liscombe Lodge."

"We are working our way through this to see if we can find a private sector investor who is prepared to make the kind of investments that we believe are required in these resorts," says McNeil.

Digby Pines and Liscombe Lodge, along with the Keltic Lodge Resort and Spa in Ingonish Beach, were once a profitable part of Nova Scotia's triple crown of government-owned tourist hotels.

Between 2003 and 2006, the province spent $7.7 million on the resorts in golf course improvements, air conditioning, new spa and meeting facilities.

'It's a big world out there'

The hallmark of all of the provincial government resorts was first rate dining and service. Digby Pines also boasted a first rate golf course and Liscombe Lodge had a wilderness focus.

But, successive governments decided to get out of the hotel business and the resorts have faded.

The province says the resorts have not turned a profit since 2009 and another money losing season is expected this year.

Nearly $2 million was spent sprucing them up in 2012 with "customer-facing refurbishment and upgrades including furniture, fixtures and equipment" in the failed attempt to sell the Digby Pines and Liscombe Lodge.

The New Democratic government, which was in power at the time, said it did not receive an acceptable offer for the resorts. It hired Connecticut-based New Castle Hotels and Resorts to operate the properties. That management contract expires in January 2016.

Darlene Grant Fiander, the president of the Tourism Industry Association of Nova Scotia, said the resorts were once flagship draws but their importance has diminished, along with government support.

Still she's hopeful this sale will work.

"It's a big world out there. If you are dealing with a real estate broker that is involved in the global tourism community there probably is lots of investors," she tells CBC News.

Once hired, the realtor will be given 10 weeks to try to sell the properties, together or separately.