The University of North Texas announced Thursday that the former Radisson Hotel will close as of June 1. The university took over operation of the hotel at the start of April.

DRC/Barron Ludlum

The University of North Texas announced Thursday that the former Radisson Hotel will close as of June 1.

UNT bought out the remaining 45 years of a lease with Denton Hotel Associates for $4.56 million, ending their agreement as of March 31.

In a letter dated April 10 to the university community, UNT President Gretchen Bataille said the remaining employees of the hotel are encouraged to apply for jobs at the university.

“Employees will receive a package of information about employment opportunities at the university prior to the hotel’s closure,” Bataille said in the letter.

The university hired Prism Hotels and Resorts, a Dallas-based hotel property management company, on a three-month lease and did not renegotiate a continued branding contract with Radisson.

RDA Hotel Management Co. operated and advised the Radisson for Denton Hotel Associates for the past four years, said Michael Gallucci, executive vice president of RDA Hotel Management.

UNT owns the land the hotel sits on, and Denton Hotel Associates had been leasing the hotel since 1997.

The sale transaction with UNT was a mutual agreement, Gallucci said.

“We decided to list the property for sale and during that process we talked with UNT,” he said. “They were a natural buyer since they owned the land already.”

The hotel had been for sale since 2007, and Gallucci said his company was in negotiations with UNT for about six months.

Gallucci said Denton Hotel Associates’ decision to sell the hotel was because of a slowed economy in Denton.

“The market here isn’t unusual to markets with other hotel properties,” he said.

If UNT had not bought the hotel, Gallucci said Denton Hotel Associates would have sold it to someone else.

While no plans for the future use have been finalized, Bataille said in the letter, “Long term, having a full-service quality hotel in proximity to UNT is important to a vibrant campus life, especially when it comes to athletic, academic and cultural events; graduations; and the employment of our students.”

Gallucci said he didn’t know what future plans the university has for the hotel but anticipated UNT would eventually use the property as a dormitory or part of its hospitality management program.

“I was not aware it would close,” he said.

RANDENA HULSTRAND can be reached at 940-566-6845. Her e-mail address is rhulstrand@dentonrc.com .