Jay G. Snyder of Snyder Nationwide Real Estate represented the Merrill family. Snyder tells GlobeSt.com that the family owned the resorts for more than 40 years and when the father passed away recently, the family decided it was time to sell. The new owners, he notes, have plans to renovate the hotels.
The properties were on sale for a year and a half in a market that Snyder terms "extremely difficult." Hotel financing, which is never easy, has become even tougher over the past year with the recent recession. "Lenders will not lend on these types of properties," notes Snyder. "There is also a big spread between what buyers will pay and what owners want to get." Lafayette Hotels had good relationships with a number of financial institutions in Maine, says Snyder, and was able to get three banks to finance the all cash transaction.
The sellers got their asking price which Snyder calls a "significant" price. "In today's market, this would have traded for $12 million," he adds, but because the Norseman is in a resort area and there are high barriers to entry for this type of property, they were able to charge a premium.
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