Strong buyer interest drives another banner year for Northern NE hotel sales - by Earle Wason

Before writing this article, I revisited my Fall Previews from 2023, 2024, and 2025. In retrospect, they captured the broader market accurately.

The main themes remain relevant today: more buyers than sellers; a limited supply of hotels for sale; and a growing trend toward renovating and retrofitting older, smaller motels. Rising construction costs have slowed new hotel development and increased demand for older properties – primarily those with three or more stories – that can be acquired for about $100,000 per room, give or take. Average daily rates remain under pressure, while hotel ownership continues to consolidate. These conditions also help explain why few foreclosures or REO hotels have reached the market.

Interest rates were another recurring topic. Current rates are slightly higher than last year, and commercial loan rates appear to have stabilized between 7% and 8%. I continue to view these as attractive rates. My advice is not to expect a significant decline or allow a business plan to stall while waiting for lower rates; over the course of my career, rates have averaged much higher. Capitalization rates vary by property quality and location, but the market generally indicates a range of 8% to 10%, with some transactions higher. These figures typically reflect deductions for franchise-required property improvement plans or immediate capital needs at independent hotels.

Hotels are selling, although activity remains below the unusually high volume of 2022, which should not be treated as a benchmark. Even so, Wason Associates has had – and continues to have – a banner year. Many properties have been marketed confidentially because staffing shortages make owners concerned about losing employees. Most buyers retain existing staff and may offer higher wages or better benefits. However, confidential marketing can limit exposure and may prevent an owner from achieving the best price.

We expect to close the year with several strong transactions. To illustrate the current market, the following are sales we have completed and properties under agreement for 2026. Closed transactions include the 58-room Comfort Inn in North Conway, New Hampshire, which received eight offers within the first 10 days; the 55-room North Star Lodge in Killington, Vermont; Old Salt and Lamies, a landmark restaurant and tavern with 34 rooms in downtown Hampton, New Hampshire; the 85-room Green Granite Inn and Conference Center in North Conway; the 58-room Black Bear Inn in Orono, Maine; the Holiday Inn Express in North Conway; and the fully renovated Newfound Lake Inn. Located on New Hampshire’s Newfound Lake, the inn includes an attractive restaurant and lounge, 28 rooms, and a remodeled barn for events and weddings. Properties under agreement include a 48-room limited-service resort hotel in New Hampshire’s Lakes Region; a 31-room beachfront hotel north of Boston; a 38-room motel in New Hampshire’s White Mountains; a 71-room franchised hotel in Augusta, Maine; a full-service lakefront inn in southern New Hampshire; a 75-room limited-service hotel in northern New Hampshire; and a boutique inn in one of Vermont’s leading resort communities.

The year has been highly successful for our firm, driven in large part by the variety of properties we bring to market.

We also have several new opportunities, including the former Hawk Inn and Mountain Resort in Plymouth, Vermont. This closed, full-service hotel presents a significant repositioning opportunity. A buyer could restore the iconic resort to its former prominence or pursue an alternative use, such as residential housing, a rehabilitation center, or a 55+ community.

Set on the floor of the Black River Valley and framed by mountain views, the property spans 99 bucolic acres of meadows, rivers, lakes, ponds, and woodland. Its diverse, unspoiled landscape supports abundant outdoor recreation. The property is also centrally located near many of Vermont’s leading attractions, between Killington and Okemo Mountain Resort, alongside the route known as Skiers Highway, and close to the quaint town of Woodstock.

That is all for now. Best wishes for a wonderful holiday season.

Earle Wason, CCIM, is president and owner of Wason Associates Hospitality Real Estate Brokerage Group, Portsmouth, N.H.