Feb. 06, 2011--NEW CASTLE -- Sixteen years ago, the Wentworth by the Sea Hotel was headed toward demolition, a crumbling shell of its former illustrious self.

Dozens upon dozens of investment companies had evaluated the dilapidated grand hotel since it closed in 1982, although each backed away from the multimillion-dollar project for various reasons. Locals didn't give up hope, though, and eventually in 1997, a buyer took the $30 million risk to rejuvenate the property.

Fast-forward to 2011 -- about seven-and-a-half years after the hotel reopened -- and that buyer, Ocean Properties Ltd., has almost made the move look risk-free.

Wentworth by the Sea was recently named as one of the 504 hotels on Conde Nast Traveler's prestigious international Gold List for the third year in a row, and for the first time was also named as one of the "500 World's Best Hotels" by Travel and Leisure. The Wentworth also was the only New England hotel on each list this year.

The hotel is upgrading its spa as a part of its first major capital improvement project since the reopening, something some experts say indicates the initial $30 million investment has paid off and the hotel is reaping the benefits of sustained industry excellence.

"A new hotel should begin to turn a profit in three years after an investment if all the numbers work," said Carl Linblade, an industry expert and professor within the University of New Hampshire's Hospitality Management Department. "They are clearly within the high end of industry norms, given the facts that during the recession many renovation projects were deferred.

"There are a whole bunch of factors that a hotel must successfully manage to turn a profit, and I would say Wentworth by the Sea has beautifully found that balance."

The Wentworth was originally built as an 82-room resort named the Wentworth Hall in 1874 by Daniel Chase, a Boston distiller from Somerville, Mass.

The name was changed to Hotel Wentworth in 1876, and the hotel was later purchased in 1879 by Frank Jones. Jones made several alterations, such as adding two new floors to expand the room total to 300 as well as adding a golf course, a clubhouse, a dining room and other attractions.

The building saw a lot of history after that, according to current Wentworth General Manager Frank Wetenkamp, who said one of the most notable occurrences was in 1905, when Russian and Japanese delegates stayed at the Wentworth and devised the Treaty of Portsmouth, which ultimately ended the Russo-Japanese War.

The hotel continued to operate until 1982, closing after the owner sold the property and recommended the Wentworth be overhauled to meet modern guest expectations, said Wetenkamp.

Despite the efforts of the hotel's multiple owners after that point, Wetenkamp said the Wentworth continued to remain closed and slip into disrepair.

A local group named the Friends of the Wentworth pushed for several years in the 1990s to save the hotel from demolition. Eventually, after dozens of fruitless attempts to find a buyer, Ocean Properties purchased the property in early 1997 in order to save the historic hotel, according to Stephanie Seacord, the current Wentworth public relations director and a representative for Ocean.

Linblade said the romantic ideal of saving old buildings is the reason most companies embark on the "extremely risky enterprise" to restore grand hotels -- marked by high ceilings, columns and extraordinary decor and architecture, with service to match.

He said that is also their downfall, though, as most developers become "so enamored with the restoration and spend too much money" on refreshing grand hotels that the hotel can never turn a profit.

There are only 10 in the country and four in New Hampshire, he noted.

What he said differed in Ocean's strategy, though, is they were able to keep their "corporate ego" in check and essentially start over, nearly gutting the entire building to create a 161-room version of the hotel the market wanted and could support when it reopened in 2003.

Linblade called it a "magic confluence" of market sense, development sense and respect for the hotel's charm that allowed Ocean, which is based in Portsmouth and is one of the 10 largest hotel management companies in the country, to be successful.

"These hotels have to stand alone against more modern hotels where maintenance costs less because the buildings are newer and are built to more modern standards," he said. "The success of the (Wentworth) is almost despite its historic charm. If Wentworth had no flat-screen TVs or modern bathrooms, it wouldn't be successful. The consumer of today is not into yesterday's hotel amenity style."

Because of that success, which Linblade said is well measured by inclusion on the guest-driven awards lists as well as high awards the Wentworth has received within its Marriott brand, it now has the ability to refresh its features for the first time since 2003.

Seacord said she isn't sure if the initial investment has fully paid off, although she said the hotel is in a good financial position to begin the work thanks to strong summer seasons, growing wedding services and surprisingly steady winters despite highs and lows due to the economy.

The spa work is expected to be completed by the end of the year and is the beginning of a series of improvements, including redoing each room's bedding and eventually the hotel's dining room.

Seacord said all of these things are essential for any hotel -- regardless of market -- to continue to stay attractive to its customers, let alone maintain a level of quality that places any hotel into the upper echelon of the industry.

"Sooner or later, no matter how nicely you smile or treat guests, you need to look at the actual physical plans if things need upgrading because they don't look as good," she said. "The expectation of a spa is beyond what is was in 2003. We need to get evolving. We need to make that investment to maintain our service and hopefully anticipate where the trends are going."

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