Despite higher interest rates and tighter lending, hotel transactions across Upstate New York and New England are picking up, supported by regional lenders, SBA financing, and renewed buyer confidence.
By Mitchel Muroff, Muroff Hospitality Group
As someone deeply rooted in hospitality real estate—having owned and operated multiple franchised hotels across the Northeast and Canada, and now brokering and advising hospitality assets throughout New York State and New England—I’ve witnessed plenty of market cycles. My firm’s nationwide database connects regional hotel owners with serious buyers and investors. Lately, one thing stands out: while the industry has faced its share of headwinds, hotel transaction activity has remained surprisingly steady.
Market Stability and Buyer Confidence
Across much of upstate New York and New England, occupancy levels have softened slightly since their post-pandemic peaks. Still, average daily rates (ADRs) have held firm, signaling that buyers continue to value well-located, well-run assets even as they become more selective.
Meanwhile, interest rates have started to ease after a long tightening cycle, bringing renewed attention to hotel acquisitions that show clear upside. Financing remains cautious, but deals are getting done—particularly when buyers combine traditional bank debt with other creative lending programs.
Financing and the Role of Local Lenders
In markets like Warren County, Saratoga, and the greater Lake George region, regional banks remain essential to hotel lending. Their familiarity with seasonal demand and tourism patterns allows them to underwrite transactions that larger national lenders might overlook.
Many buyers also rely on SBA 504 and 7(a) loans, which give lenders added protection and allow borrowers to secure 20- to 25-year fixed-rate financing on the SBA portion at competitive rates. This structure reduces lender risk while giving buyers predictable long-term debt service—an especially attractive option for smaller or first-time investors.
Even so, banks continue to scrutinize borrowers closely and often require more equity than before. Seller financing can help bridge the gap, though not every owner is willing to extend it.
Regional Hotels Outperform Urban Assets
Since COVID, mid-sized hotels in secondary and tertiary markets have performed better than many urban properties. City and airport hotels are still adjusting to fewer corporate meetings, smaller events, and reduced business travel. In contrast, regional hotels and resorts have benefited from travelers’ ongoing preference for drive-to leisure destinations—places easily reached for short getaways. That lasting shift has been a clear advantage for markets like Lake George, Saratoga, and the Adirondacks.
Why Owners Sell—and What Buyers Seek
Hotel owners sell for many reasons: upgrading from independents to franchised hotels, retiring, or redirecting capital into new ventures. Operational factors also matter. Owners who manage several hotels within driving distance can better control staffing and expenses, while those relying on third-party management firms often face higher overhead and reduced margins. In smaller markets, direct or closely supervised management typically yields stronger NOI and a healthier bottom line.
Market Experience and Perspective
Over the years, I’ve represented numerous hospitality owners throughout the Lake George region and the Adirondacks, guiding them through transactions of all sizes. Beyond Lake George, I’ve handled hotels and resorts across New York, Massachusetts, and Maine, reflecting the diversity and resilience of the Northeast’s lodging market.
Our firm is also involved in larger projects, including the Hudson Yards Hotel in New York City, a 105-room “urban resort” currently offered for sale, and an 1,140-acre mountain resort under agreement near Whiteface Mountain—one of the largest mixed-use hospitality opportunities in the Adirondacks.
Because I’ve been both an operator and an advisor, I evaluate properties through an operational lens. I look beyond stabilized NOI to analyze expense structure, capital needs, and management efficiency, along with comparable sales, revenue-per-room multipliers, and cap rates—key indicators of a property’s true potential.
While I don’t represent clients in a legal capacity, my background as an attorney helps me guide them through the complexities of hotel transactions with greater confidence. I assist in reviewing Letters of Intent, Purchase & Sale Agreements, and deal structures, working closely with counsel to ensure clarity and efficiency.
Looking Ahead
Buyers today are focusing on fundamentals—consistent cash flow, sound operations, and potential for performance improvement. Many successful deals include creative financing or some level of seller participation, while properties with strong management and clear upside continue to attract the most attention.
Overall, the regional hospitality investment market remains active, particularly for well-run assets with realistic pricing. With interest rates trending downward and buyer confidence returning, both sellers and investors have reason to be optimistic about the months ahead.