MCR Hotels purchased Vermont’s Stoweflake Mountain Resort & Spa in December for $13 million from the Baraw family. The pickup of Stoweflake, just downslope from Mount Mansfield, the state’s highest peak, could breathe new life into the property as tourists come back to the area, reestablishing it as one of the top-performing hotels on the mountain.
The property: The Stoweflake resort, at 1746 Mountain Road in Stowe, Vermont, sits on 42.9 acres in the northern Vermont hospitality market. The property features 117 guest rooms and suites and a 25,000-square-foot conference center with 17 meeting rooms. There are three on-site dining options. Guests can swim and play tennis at a 40,000-square-foot sports center or golf a nine-hole course. There's also a waterfall and 10,000-square-foot Zen garden.
Why it matters: In 2017, Vail Resorts acquired Stowe Mountain Resort, one of Vermont’s best-known ski spots. While Stowe has always been a high-end East Coast getaway for New Englanders as well as Canadians, Vail’s acquisition brought a newfound popularity that helped reinvigorate the area as a craft beer mecca and premier dining destination. MCR is looking to capitalize on that movement with its acquisition of Stoweflake.
The brokers: Michael Salloway of HREC Investment Advisors in Atlanta represented the buyer. Ken Libby of Stowe Area Realty Group at KW Vermont-Stowe represented the Baraw family.
What they’re saying: “This was a unique and challenging transaction as it involved several moving parts. In the end, we were able to work out all the complicating factors and bring the deal to fruition,” Salloway said. “I know that MCR has big plans, and I am excited to see them enhance the property and return Stoweflake Mountain Resort & Spa to its rightful place as a top Northeast resort destination.
“The buyers know the area very well. They had recently purchased Killington Mountain Lodge and thought this would be a great fit for them. Stoweflake has some retail that can probably be redeveloped. The entire property was placed in a planned unit development for increased density. So, the new owners, whether or not they choose to, they’ll have the opportunity to double the room count.”
What’s next: The property is set to undergo a major renovation of between $5 million and $7 million, and MCR is presently deciding if the property will be affiliated with a brand. The acquisition followed MCR’s purchase earlier in 2021 of the 102-room Killington Mountain Lodge. MCR is operating that property as a Hilton Tapestry affiliate
Tourism returns: Stowe’s hotel revenue shattered records this past summer, according to a report by the Stowe Reporter. A 1% tax levied on meals, alcohol and rooms within the town’s boundaries has been a reliable source of revenue used every year to fund capital projects. Factoring in the effects of the pandemic, Stowe estimated the tax would bring in $500,000 for the 2021 fiscal year — about half of its usual amount, the Reporter said. However, for the quarter that ran from the summer months of July through September, the town raked in $417,000, which is more than double the take during the time in 2020.
CoStar’s Impact Awards highlight the commercial real estate transactions and projects that have transformed their markets over the past year. The winners are chosen by independent panels of industry professionals who work in the markets they judge. A list of judges can be found here and the criteria for selecting winners can be found here.