Troubled MDI hotel reopens under new ownership

TL;DR

Troubled Asticou Hotel on Mount Desert Island sold out of bankruptcy to Ocean Properties for $60 million.
Former owner Tim Harrington faced $14 million in contractor liens after $28 million renovation.
Hotel reopens May 15 under new management, stabilizing a historic Maine property.

The story at a glance

The Asticou Hotel, a historic property on Mount Desert Island, was sold last month after unpaid contractors forced bankruptcy. Ocean Properties bought it for $60 million and plans to manage it, with Atlantic Hospitality as the parent group. This comes right before the May 15 seasonal opening, following financial issues under prior owner Tim Harrington. The area relies on tourism, especially around Acadia National Park.

Key points

Asticou Hotel (formerly Asticou Inn) renovated for $28 million from 2024-2025 by Tim Harrington, who bought it in 2023; reopened July 2025, closed for winter.
Contractors filed millions in liens, including $14 million allegedly owed for materials and services; four Maine businesses petitioned for involuntary bankruptcy in February 2026, claiming $192,004.
Bankruptcy sale finalized in March 2026 to Ocean Properties, a Walsh family-owned firm with over 125 hotels in North America, including several in Bar Harbor.
Hotel set to open May 15, 2026, under Ocean Properties management.
Harrington accused of similar contractor payment issues at other Maine properties.

Details and context

The hotel sits on Mount Desert Island in Northeast Harbor, one of few pre-World War II properties there, drawing visitors to nearby Acadia National Park. Harrington's renovation aimed to modernize 82 rooms while keeping historic charm, but payment disputes escalated quickly after the July 2025 opening.

Ocean Properties has deep Maine ties through Bar Harbor resorts, positioning it to handle seasonal tourism demands. The bankruptcy resolved liens and ensured continuity for staff and suppliers.

Prior coverage noted Harrington paid his bankruptcy lawyer over $178,000 before creditors acted, highlighting tensions in the deal.[[1]](https://www.bangordailynews.com/2026/03/23/hancock/hancock-business/asticou-hotel-bankruptcy-sale)[[2]](https://www.bangordailynews.com/2026/04/13/hancock/hancock-business/mdi-hotel-asticou-new-ownership-opening/)

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.” — Ocean Properties press release.

“The revival of The Asticou was made possible by the dedication and craftsmanship of many partners, tradespeople, and collaborators.” — Atlantic Hospitality press release.

Why it matters

This sale preserves a key tourism asset on Mount Desert Island amid contractor disputes that risked its future. Visitors gain reliable access to a renovated historic hotel under proven management, while local businesses may recover payments. Watch the May 15 opening and any lingering contractor claims or Harrington's other properties.

LANG: en