540 Rt-42

Historic Turnkey Hospitality Investment. Major price drop to $1,999,000. Projected cap rate over 15%. 7,863 SF on 1 acre with 7 renovated guest rooms and 5 additional rooms ready for expansion. Restaurant & bar generate $1,500–$2,000/day, 4 days/week. Urgent: Available only until year-end—property will be taken off market and integrated into owner’s new resort project. Updated mechanicals, chef’s kitchen, active full-service liquor license.—A rare Catskills commercial offering blending historic charm with modern amenities. Originally built in 1805 and fully renovated for 2025, this 7,863 sq ft inn sits on 1 acre along Bushnellsville Creek. The second floor offers 7 guest rooms; 5 more on the third floor offer future expansion potential. The property’s rich past includes use as a stagecoach station, post office, tavern, and meeting house.
Recent upgrades include new bathrooms, a chef-designed kitchen with all new appliances and pizza oven, updated heating, new artesian well, on-demand hot water, and a DEP-approved septic system. The large barn provides additional event or storage space. Fully licensed and operating as a hotel, restaurant, tavern, and package store—currently with hotel, food service, and full liquor license active.
Located within the NYC Watershed protected area—where new hospitality approvals are rare—this is a turnkey opportunity. Enjoy thoughtfully preserved rustic details, wide board floors, pine ceilings, handcrafted furnishings, and mountain or creek views from nearly every room. Moments from skiing, hiking, and the hamlets of Shandaken and Phoenicia.