Ocean Properties Will Likely Buy Asticou For $60 Million.
Purchase and Sale Agreement Part of Bankruptcy Proceedings Still Needing to Be Approved by Judge.
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MOUNT DESERT—Ocean Properties will likely buy the Asticou Hotel in Northeast Harbor. A judge still has to approve the deal.
“We are pleased to announce that a company owned by members of the Walsh family has reached an agreement to purchase the historic Asticou Hotel in the Town of Mount Desert subject to court approval,” said Eben Salvatore operations manager for Ocean Properties, Monday.
The property is owned by Tim Harrington, a local hotelier, who agreed to sell the historic hotel, that was recently renovated, for $60,750,000 to NAECO LLC. That company is a subsidiary of Ocean Properties.
“This investment reflects our commitment to preserving the hotel’s rich heritage while enhancing the guest experience through thoughtful updates and improved amenities,” Salavatore said.
Ocean Properties began in 1969 when Thomas T. Walsh purchased Brewer’s Plaza Motel. Since then, the Walsh family’s company expanded to market more than 100 hotels and host 19,000 guest rooms throughout North America. Locally, those include the Bar Harbor Regency; Harborside Hotel, Spa, & Marina; and West Street Hotel.
The Harborside and Bar Harbor Club were extensively restored as were the historic Wentworth by the Sea in New Hampshire, which the company also owns.
“Located in the heart of Mount Desert Island, the Asticou will continue to serve as a premier destination for visitors seeking both relaxation and access to Acadia’s natural beauty,” Salvatore said. “We look forward to building on its legacy, working with the community, and welcoming guests for many years to come.”
Until the deal is approved, the Asticou, a historic Northeast Harbor hotel is owned by Harrington’s Atlantic Hospitality and Asticou Hospitality LLC, which promoted it as the grand dame of its properties.
However, in 2025 and 2026, the company and Tim Harrington, were accused of not paying contractors approximately $14 million for services and materials after a massive renovation of the property, which Harrington’s company purchased for $7 million in 2023.
Salvatore said that they’ve been working with contractors who were owed money and that Ocean Properties was excited about the level of craftsmanship in the hotel and in its renovation. Many of the contractors have agreed to return to finish some of the work as well and will receive payment.
The Asticou also previously had to enter into a consent decree with the Town of Mount Desert for its continued operation.
In July 2025, in an attempt to avoid litigation, the Mount Desert Select Board and Asticou Hotel entered into an administrative agreement, it was announced after a select board executive session and regular meeting vote, July 21, two days after the hotel announced that it was open after extensive renovations.
The building’s original inn has 50 freshly renovated rooms. Now, in addition to those 50 rooms, there are 15 standalone cottages called “Asticou Village.” There are also 17 spa terrace suites, each with a private harbor-view terrace.
Shortly before 1800, the Savage family settled in Northeast Harbor. By the middle of the century, Augustus Chase Savage and Emily Manchester Savage built the Cranberry Lodge, one of the inn’s buildings. According to the Asticou’s website, “In 1870, the Savages began housing boarders, and so began the tradition of lodging at the Asticou-Inn.”
Four businesses had filed involuntary bankruptcy petitions against Asticou Hospitality. Court documents state, the total the companies were owed was $192,004. A flower company in Mount Desert also filed for more than $8,600 for unpaid services.
Along with hotels in Kennebunkport, Harrington owns the Salt Cottages in Bar Harbor and Claremont in Southwest Harbor. He has paid his own bankruptcy attorney approximately $178,000 before the filing was forced.
According to the Bangor Daily News, “Sandy Pines LLC, of which Tim Harrington owns 100% of the shares, filed for bankruptcy on Feb. 24 and the case was ongoing as of Tuesday, according to court documents.”
The foreclosure auction scheduled for that property earlier this month was canceled because of that bankruptcy filing, the BDN reported.
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If Harrington has only paid $21M why is Ocean Properties paying more than $60M? There’s more to this story….