Gray Rocks General Manager Robert Lassince has announced that the historic, 102-year-old Quebec resort will close the hotel and end ski operations after this season.

"Following the financial loss of many millions over the past four years, Gray Rocks has decided to restructure its operations and to concentrate on its two golf courses: La Belle and La Bete, in order to improve its financial position."

"In order to accomplish this, the hotel operations and mountain operations will be suspended at the end of the winter season on March 29, 2009.

"La Belle and La Bete are two prestigious courses in great demand and a complete restructuring of the company will permit the better management of operations of these two superb properties," Lassince said.

He said all existing agreements and contracts will be honored to the extent possible.

"It's a very sad occasion, but it is a losing proposition," majority owner Phillip Robinson said in an interview with Mike King of The Gazette.

Robinson said the hotel will likely be demolished.

 "We've been trying for 10 years to sell the building and also trying to raise funds to tear it down and develop the land," Robinson said.

"The housing/land market has completely dried up up here, it's comatose."