(Kittery, Maine) – Farrell & Doak Hospitality Advisors recently closed the sale of the 108-key former Ramada in Kittery, Maine. While the buyer’s vision for the property is specific to the site, it reflects a larger trend we’re seeing across New England: hotels being repositioned as housing — whether for workforce, market-rate, or mixed-use.
♦Why the Ramada Was Right for Redevelopment
The Ramada in Kittery checked several boxes:
- Strong structure & bones for a multifamily layout
- Large lot size with parking already in place
- Support from local planners facing a housing shortage
The buyer pursued a zoning change to allow for residential conversion — a move that required planning board approval, public hearings, and navigating local development concerns. While it required patience and persistence, the town ultimately saw alignment between the developer’s vision and its long-term needs.
♦ This Isn’t Just a Kittery Story
Other hotel-to-housing conversions are happening across the region:
- Danbury, CT: The former Crowne Plaza (240 rooms) is approved for conversion into 198 apartment units.
- Worcester, MA: A former Quality Inn (114 rooms) is being converted into 90 affordable studio and one-bedroom units.
- Boston, MA: The former Comfort Inn on Morrissey Boulevard is being redeveloped into 99 units of permanent supportive housing.
These projects reflect multiple housing strategies — from market-rate multifamily to income-restricted and supportive housing. But the thread is the same: aging hotel inventory is increasingly seen as an opportunity to solve a growing regional housing crisis. Unlike new construction, hotels come with existing infrastructure (plumbing, parking, access), often larger lot sizes than typical apartment parcels, and an immediate structure to convert.
♦ The Lesson for Hotel Owners
If you own a hotel that:
- Struggles with declining or static performance
- Has zoning that allows for multifamily or mixed-use (or a town willing to consider it)
- Sits on a site with strong infrastructure or excess land
- Is in a town with a growing housing need
…it may be worth exploring your property’s redevelopment potential. In many cases, housing developers will pay more than traditional hotel buyers — especially if the structure, parking, and permitting are favorable.
These buyers are different. They’re patient, creative, and willing to work through red tape. But they also move with purpose when the site makes sense — and the returns can reflect that.
Curious if your property could qualify?
Farrell & Doak specializes in helping owners understand their exit options, including traditional sales, redevelopment partnerships, and off-market conversions. We’re always happy to start with a conversation.