Mendon hotel up for auction
By Bruce Edwards
STAFF WRITER | September 05,2012
Albert J. Marro / Staff Photo
The Mendon Mountain View Lodge will be auctioned off Sept. 18. The noon auction will be held on site.
MENDON — Another area hotel is on the auction block.
The 40-room Mendon Mountain View Lodge and Kindles restaurant on Route 4 is up for a foreclosure auction this month.
Tranzon Auction Properties will hold the auction Sept. 18 at noon with a preview scheduled on Sept. 6, from 11 a.m. to 1 p.m.
Built in 1988, the 28,280-square-foot hotel and 86-seat restaurant occupies 7.4 acres on Route 4 across from the Cortina Inn.
According to Tranzon’s 91-page prospectus, the property is assessed at $1.26 million and pays $24,000 a year in property taxes. The owners owe back sewer fees of $1,620 to the Alpine Pipeline Company and $3,265 to the city of Rutland in back sewer usage fees.
Brian and Stacey Metivier, the hotel owners, are current on their property taxes, according to the Mendon Town clerk’s office.
The auction is the latest of several auctions of local lodging properties in the Rutland-Killington area. The Vermont Inn in Mendon was sold at a foreclosure auction last year, reopening under new ownership. The Holiday Inn on Route 7 South in Rutland town was sold this spring and the Kokopelli Inn on Route 4 in Killington, which was heavily damaged during Tropical Storm Irene, was sold at auction last month.
Ray Ault of Ault Commercial Realty said segments of the hospitality industry haven’t recovered from the economic collapse four years ago.
“It’s been a tough three to four years for those properties in the Rutland-Killington market,” Ault said. “But frankly, I’m hearing the same thing from all over the state, that businesses that had done very well in the 80s and 90s, even in the mid-2000s, have not been able to generate or sustain occupancy levels anywhere close to what they used to.”
Ault said as a result occupancy rates in resort areas that averaged 45 percent to 55 percent have fallen below 45 percent to as low as 20 percent for some properties.
Michael Carey, a vice president with Tranzon, said Monday there is no minimum bid but the bank reserves the right to reject an offer it deems too low.
Despite what appears to be a soft market for hotel properties, Carey said it depends on the property and the location.
He said inquiries received so far indicate strong interest in the Mendon property.
“From our perspective, this property has really generated a very solid amount of interest (not only) from around New England and the Northeast but nationwide as well,” Carey said.
The winning bidder is required to make a $50,000 cash deposit at the time of the auction. The deposit is then increased to 10 percent of the purchase price within five days with closing taking place within 30 days.
Ault said other factors have also contributed to the decline in the hospitality business. He said some hotels and restaurants failed to recognize the shift to Internet marketing while others failed to adjust their rates to more cost-conscious consumers, especially locals. He added that by its very nature the hospitality business can take its toll on family life, which can affect the way the business is run.
He said what’s sure to give a boost to local businesses is the proposed Killington ski village. While some have expressed concern that the village at the base of the ski area would drain customers from existing businesses, Ault is convinced that the village, with its shops, lodging and restaurants, will draw more visitors to the area.
“It’s a tough row to hoe but I am one who believes that we will again see days of 50 percent occupancy or better,” Ault said.