Troubled MDI hotel to open under new ownership

TL;DR

The Asticou Hotel on Mount Desert Island sold out of bankruptcy to Ocean Properties for $60 million after contractor liens.
Former owner Tim Harrington bought it in 2023 for $7 million and spent $28 million on renovations before financial troubles hit.
The hotel reopens May 15 under new management, ensuring continuity for this historic property.

The story at a glance

The Asticou Hotel, a historic spot in Northeast Harbor on Mount Desert Island, changed hands last month after unpaid contractors forced it into bankruptcy. Ocean Properties, a Walsh family-owned group with over 125 hotels including several in Bar Harbor, bought it for $60 million and will manage the reopening on May 15. This comes right before the busy summer season near Acadia National Park.[[1]](https://www.bangordailynews.com/2026/04/13/hancock/hancock-business/mdi-hotel-asticou-new-ownership-opening/)[[2]](https://www.bangordailynews.com/2026/04/13/hancock/hancock-business/mdi-hotel-asticou-new-ownership-opening)

Key points

Formerly the Asticou Inn, the hotel traces back to 1883 and underwent a major $28 million renovation from 2024 to 2025 under Tim Harrington, reopening briefly in July 2025.
Harrington bought it for $7 million in 2023 but faced $14 million in contractor liens and an involuntary bankruptcy petition filed in February 2026 by four Maine businesses owing $192,004.
A federal judge approved the sale to NAECO LLC, a subsidiary of Ocean Properties, for $60.75 million in late March 2026.
Ocean Properties operates resorts in Bar Harbor and has deep Maine ties; Atlantic Hospitality, parent of the old Asticou Hospitality, confirmed the May 15 opening.
Harrington has faced similar contractor payment accusations on other Maine projects.

Details and context

The hotel closed for winter last fall after its 2025 reopening, leaving unpaid liens from 11 contractors across seven counties totaling millions in claimed materials and services. This bankruptcy sale resolved those claims while keeping the property operational for the peak tourist season, when Mount Desert Island draws crowds to Acadia National Park.

Ocean Properties' local experience in Bar Harbor positions it well to handle the transition, avoiding a prolonged shutdown that could hurt Northeast Harbor's lodging options. The prior renovation modernized the oceanfront site above Northeast Harbor, preserving its rusticator-era appeal for summer visitors.

Key quotes

“The transition ensures that one of Mount Desert Island’s most storied properties remains in the hands of an experienced, locally rooted operator deeply committed to Maine’s hospitality landscape.”[[1]](https://www.bangordailynews.com/2026/04/13/hancock/hancock-business/mdi-hotel-asticou-new-ownership-opening/)

“The revival of The Asticou was made possible by the dedication and craftsmanship of many partners, tradespeople, and collaborators.”[[1]](https://www.bangordailynews.com/2026/04/13/hancock/hancock-business/mdi-hotel-asticou-new-ownership-opening/)

Why it matters

This sale stabilizes a key piece of Mount Desert Island's tourism infrastructure amid contractor disputes that exposed risks in large renovations. Guests and locals gain reliable access to the renovated hotel for summer stays near Acadia, while Ocean Properties expands its regional footprint. Watch the May 15 opening for any last-minute delays and early reviews of service under new management.