At Farrell & Doak, we make it our business to understand the pulse of New England’s hospitality market. Every month, we track the data, speak with owners, and analyze trends so our clients can make confident, well-informed decisions about their properties.
The start of 2025 has been a study of contrasts. Many owners are reporting flat or slightly down revenue compared to last year, while others — often those with recent renovations or strong marketing strategies — are seeing record months.
June 2025 Lodging Sales: A Mixed Start of the Season
Maine’s lodging industry is having anything but a uniform summer. Statewide, lodging sales for June were up 1% year-over-year, but when you dig into individual markets, the picture is a little more complicated.
Market Performance – May & June Snapshot
- Houlton – May: -48% | June: -57%
- Augusta – May: -31% | June: -25%
- Biddeford – May: -18% | June: -9%
- Bangor – May: ~flat | June: -20%
- Kittery ESA (includes Ogunquit, York, Wells) – May: -5% | June: -1%
- Camden – May: -3% | June: -3%
- Portland ESA – May: +3% | June: +2%
- Bar Harbor – May: +10% | June: June: +3%
- Sebago Lake – May: +11% | June: +6%
- Kennebunk/Kennebunkport: May: +14% | June: +13%
Market Insight
It’s not just what we’re hearing from owners — it’s what we’re seeing firsthand when reviewing financials for hotels currently on the market.
Economy motels and midscale hotels are under the most pressure. Occupancy and ADR erosion are showing up in markets like Augusta, Bangor, Old Orchard Beach, and Houlton, where more price-sensitive travelers are pulling back. Some areas, in particular, are being hit hard — likely tied to weaker Canadian travel.
Meanwhile, luxury and leisure-driven properties are proving more resilient. Markets like Bar Harbor, Kennebunkport, and Sebago Lake continue to see stable or growing revenues, with higher-spending guests less affected by inflationary pressures.
The result is a widening gap: budget-friendly hotels are absorbing the slowdown, while premium properties are holding or even gaining share. That divergence is critical for owners thinking about reinvestment, repositioning, or an exit strategy.
What This Means if You’re Thinking About Selling
For hotel owners, this divergence underscores the importance of knowing where your property sits in the cycle:
- Economy & midscale owners: If revenues continue to erode, it may be time to revisit your positioning, invest in upgrades, or consider whether it’s the right moment to sell before further declines.
- Luxury & upper-upscale owners: Continued resilience could make this a favorable time to reinvest, refinance, or test the market while buyer appetite remains healthy.
At Farrell & Doak, we’re closely tracking these performance shifts across Maine and New England. If you’d like to discuss how current market conditions are impacting the value of your property, we’d be glad to share more insights.