04.7.2010
Glen House Hotel Delayed By Tough Economic Climate
For Immediate Release
Contact: Ryan Triffitt
Mt. Washington Auto Road
603.466.3988 x 177 / Cell: 207.837.5045
ryan@mt-washington.com
Pinkham Notch, NH—Struggling to secure a lending partner, the Glen House hotel project at the base of Mt. Washington has been delayed. Additionally, the Mt. Washington Auto Road and the development company have reworked the project scope in hopes of allaying lenders’ fears.
“The project is not on hold, not by any means,” said Mt. Washington Auto Road General Manager Howie Wemyss. “We are committed to this project. We will build the right hotel for Pinkham Notch, and we truly believe it will be successful and continue the tradition of hospitality and outdoor recreation at the base of Mt. Washington.”
To this point, potential lenders have expressed three major concerns: the use of the New Markets Tax Credits program, the size of the hotel compared to the others in the region, and the state of the hospitality industry nationwide. Instead of waiting for the financial industry to right itself, the decision has been made to rework the hotel plan: both physically and financially.
Even before approaching any lenders, the development group spent nearly $50,000 on a market analysis from the top ranked firms of Cushman & Wakefield and Pinnacle Advisory Group in December. The resulting reports indicated that the North Country’s hotel base has weathered the economic free fall significantly better than most of the nation–nearly 15% better. With those expert opinions in the project’s favor, the New Market Tax Credits in hand and the equity secured, the only remaining step was to secure a banking partner. Even with all those steps in place and the plan to create 40 new jobs for the North Country, the financial community was unwilling to back the project. The decision has been made to discontinue the use of the New Markets Tax Credits program, which will restructure the borrowing model and reduce the amount of lending required.
Because of the commitment to moving the project forward, the plan of the hotel has been adjusted. The major elements of the project will be retained, including the restaurant, indoor pool & spa and conference facilities, and, naturally, the view and experience of being in the mountains will remain the focal point of the hotel. However, the number of rooms will be reduced from 84 to 70 and the restaurant space will be reduced. These changes will allow for a 3-story hotel building, rather than the originally planned 4-story structure. The Glen House will still be “green designed and built” per LEED standards and will embody the look and feel of a New England mountain lodge in keeping with the existing facilities.
“It’s unfortunate that our timing is off as far as the lending is concerned, but we remain hopeful that a lender who has vision, strength, and who recognizes that we’ve been here for nearly 150 years will emerge to be our partner for the next 150 years,” Wemyss added.
To this point, the Glen House project has received nothing but positive reviews and support both regionally and statewide. The consensus is that the project will be a boost for the North Country’s economy between jobs created and retained, work for local businesses that will supply goods for the hotel and the major addition to the Coos County tax base.
Wemyss and the Mt. Washington Auto Road believe that the project is about more that just building a hotel; it is about building the North Country. “It’s about taking the lead to send a message: the North Country is strong, it can support new development, and we can create new jobs right here at home,” he said. “If we were approaching this purely as a dollar for dollar effort, we’d be shutting down the project and riding out the storm in the economy, but we know that is shortsighted. We’ve been here for nearly 150 years, and you don’t stay in business that long by being shortsighted.”
About the Glen House Hotel Project
The Mt. Washington Auto Road has partnered with Acomb Ostendorf & Associates of Orlando, Florida and Portland, Maine for the planning and development of the project with significant input from Olympia Group of Portland, Maine. Moving forward, the company will be working with design and general contracting firms from New Hampshire, Maine and Vermont.
The history of hotels in the Glen began in 1852 with the construction of the first Glen House. The railroad had paid for the construction of the road through Pinkham Notch to Gorham, and shortly thereafter a bridle path from the Glen to the summit of Mt. Washington was completed. A year later, the charter was granted to build the Carriage Road up Mt. Washington. Even though it took 8 years for the road to be completed, the lure of Mt. Washington had made the Glen House a popular destination. The first Glen House burned in 1884 but was rebuilt on an even grander scale, including the longest veranda in the world. Tragically, this hotel lasted only eight years before fire struck again. Two subsequent smaller Glen Houses served guests in winter and summer into the 1960’s.
The Glen House will become an integral part of the offerings at the base of Mt. Washington. Along with the connection with the Mt. Washington Auto Road, which will offer packages for individual travelers and groups, Great Glen Trails will enhance the experience of lodging at the Glen House. A walking path will be constructed to the existing facilities in summer, and ski trails will connect Great Glen Trails and the Glen House in winter.
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