Boutique Hotel Collection for Sale in Nantucket

Thursday, May 24, 2018

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale The Veranda House Hotel Collection, two adjacent boutique hotel properties located in Nantucket, Massachusetts. The Collection consists of the 18-room Veranda House and the 11-room Chapman House. Both hotels for sale benefit from contemporary interior design and an ideal in-town location, just steps away from pristine beaches, world-class restaurants, high-end boutiques, art galleries and historical landmarks. The Veranda House Hotel Collection offers investors the rare opportunity to acquire two award-winning boutique hotel properties located in New England’s most sought-after luxury tourist destination.

Nantucket is an under-supplied, high-barrier-to-entry hotel market allowing existing hotels to achieve strong operating results. Investors will benefit from multiple value-enhancement opportunities to further drive performance over the long term. Offers will be considered on each individual property as well as the entire collection.

With a rich history dating back to 1684, the Veranda House is a luxury boutique hotel with 18 guest rooms and suites, each with a king or queen bed and a private bath. The award-winning boutique hotel underwent a comprehensive renovation in 2007 and features a three story, wrap around veranda offering sweeping views of Nantucket Harbor and the property’s lush gardens. The hotel for sale is situated on .19 acres at 3 Step Lane.

The Chapman House is a boutique bed and breakfast with 11 guest rooms and suites. The property was built in 1830 and renovated and redesigned in 2012. The hotel for sale’s innovative design benefits from vibrant colors as well as hip and stylish features.  Chapman House is situated on .13 acres at 20 North Water Street.

Hotels for Sale Investment Highlights

  • Ideal In-Town Location in Nantucket, an Unparalleled Luxury Tourist Destination:  The Veranda House Hotel Collection is located in the heart of Nantucket’s historic downtown. The hotels are within walking distance of the island’s ferry terminals, pristine beaches, world-class restaurants, high-end boutiques, art galleries and historical landmarks. The Veranda House Hotel Collection is situated on the idyllic island of Nantucket, one of the most sought-after luxury tourist destinations in the nation.  Nantucket’s coast includes 82 miles of pristine beaches, and the island offers plenty of outdoor activities including scenic biking and running trails, surfing, sailing and world-renowned golfing. The island hosts seasonal events, including the Nantucket Daffodil Festival, Nantucket Film Festival and the Christmas Stroll.
  • Award-Winning Boutique Hotel Product:  Veranda House earned TripAdvisor’s Certificate of Excellent for 2018, and the hotel is ranked as No. 5 of 14 hotels in Nantucket. Additionally, Chapman House was bestowed Yankee Magazine’s Editor’s Choice Award for the “Best Boutique Lodging.”
  • In-Place Cash Flow with Upside:  The Veranda House Hotel Collection has a proven track record for generating strong operating results and cash flow.
  • Value Enhancement Opportunities:  A new owner could expand the current May to October season as well as expand the hotels by finishing the attic in Veranda House and converting on-site staff housing units.  Other value enhancement opportunities could include new branding or luxury positioning; residential conversion to time shares, condos or single-family homes; or even entering into a management position with the neighboring Arbor Cottage. 

The Veranda House Hotel Collection is being offered unencumbered by both brand and management, offering investors complete flexibility in terms of ongoing operating strategy. Investors can continue to operate the properties as-is or evaluate multiple value enhancement opportunities. For more information on these hotels for sale or other commercial properties for sale in the Northeast, please contact Denny Meikleham, Alan Suzuki or Matt Enright. To view current real estate investment sales listings, please click here to view HFF’s property search page.

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