A source familiar with the sale declined to reveal the buyer but tells GlobeSt.com that the inn was acquired by an independent buyer not affiliated with any national hotel chain. The deal is subject to customary closing conditions and is expected to close by the end of June.
The 24-acre waterfront property opened in 1914 on former farmland adjacent to Chatham Harbor. The main inn has 40 guest rooms with additional rooms in the more than 20 cottages that surround the property. The Inn, which is the largest single taxpayer here, is currently assessed at approximately $60 million, according to town records.
Representatives from AFG and GAFR did not return calls from GlobeSt.com seeking comment. In a statement released by the company, however, Craig Lindner, AFG's co-chief executive officer and Great American's chief executive officer, says the sale would provide the firm with additional capital to grow its core insurance operations. The property generated an after-tax gain of approximately $27 million to $29 million for the seller.
The firm has invested more than $50 million in the property. A $15-million renovation project is currently under way to add a large kitchen to the main inn building, reconstruct the waterfront Beach House restaurant and create a new spa. General manager Chris Diego notes that the projects are expected to be completed by June before the start of the summer tourist season.
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