The motel at 40 Kebo Street has always been a convenient lodging choice for those looking to enjoy Acadia National Park as well as downtown Bar Harbor. Built in 1958, the 77-room motel sits at a stoplight on Route 3—visitors passing through Bar Harbor can’t miss it.
The property was operated by the Witham family for many years and was purchased by Giri Hospitality in 2020. Based in Massachusetts, Giri owns 49 hotels in five states. Their time owning 40 Kebo Street was short but productive; it included the removal of an above-ground swimming pool, room remodels, and re-flagging the property under Choice Hotels’ Ascend Collection.
Local buyer Stephen Coston heads the Stay Bar Harbor hotel group, which owns a growing portfolio of properties in Hancock County, a significant number concentrated around downtown Bar Harbor.
The transaction was arranged by first-year Boulos associate, Roy Donnelly. Roy saw an opportunity, and after a few fortuitous cold calls, he and Stephen connected. After a few more, Roy connected with the leaders at Giri Hospitality, and the idea was hatched.
The negotiation process for this deal involved extensive communication, with Roy taking on the crucial role of intermediary. After reaching consensus on the price and terms, attention shifted to the existing franchise agreement. Giri’s strategy typically involves partnering with prominent hotel groups like Choice, while Stay Bar Harbor operates autonomously. Ensuring the property’s transition to an independent motel necessitated negotiations not only between the involved parties but also with Choice, who still had several years remaining on their contract. Ultimately, this led to a mutual agreement to share the burden of termination fees and associated penalties.
All’s well that ends well: the transaction brought the motel back into local hands, leaving the sellers free to invest in areas where they have more competitive advantages. The new owners plan additional improvements and have renamed the property the SeaSider Motel, a nod to Bar Harbor High School’s sports teams of yore.
According to Executive Director Charles E. Hewitt, “[they] looked seriously at a lot of sites, made offers on several, but encountered owners who were really only in it for their own gain.”
That’s when IDEALS turned to the Boulos Company for help. They had a list of things they were looking for in a potential site, and only a few parcels in the Portland area could fit their requirements. Tony McDonald, a Boulos partner advising IDEALS, thought outside of the box: instead of looking at properties for sale, he turned to Google Earth aerial views just to see where the project might fit.
“Forget about who owns it, was it for sale or not. I just started looking for what Roux wanted: aesthetically pleasing, close to downtown and easy to get in and out of. That’s when I realized it was B&M.”
Tony drew on over a decade of experience and familiarity with the owners of B&M, who weren’t even selling the property, once they realized the offer was serious, the deal closed quickly. Even when the property wasn’t for sale, we managed to make a deal happen for our client and help them accomplish their goals.
The Portland, Maine Office:
One Portland Square
Suite 400
Portland, ME 04101
207-544-4382
properties@boulos.com
The Portsmouth, New Hampshire Office:
14 Manchester Square Suite 235
Portsmouth, NH 03801
(603) 427-1333
properties@boulos.com