The Chieftain will remain open until September, and Kendal has not released plans for future use of the plot.
The inn's waterfront property, which has operated since the 1950s, is an eight-minute drive from campus and a popular place for alumni to stay when visiting the area.
"It has been the [Dartmouth] functions that have carried us," inn keeper Jennifer Barton said. "Last year specifically, if it wasn't for the functions, I don't know what we would have done. I'm indebted to the students for continuing to use us."
Kappa Kappa Gamma sorority had its summer formal at the Chieftain and plans to host their spring formal there as well, formal chair Jessica Wolf '14 said.
The sorority chose to host the inn for its convenient location and outdoor riverfront space.
"It's fun for people to swim, and they are easy people to work with," Wolf said. "I'm not feeling so good about it because I'll have to find somewhere else to host formals."
The Chieftain experienced financial strain for several years, owing to the influx of numerous chain hotels in the area that use more aggressive advertising tactics, Barton said.
"The mom and pop places can't really keep up with that," Barton said. "There is a family that's running it and they can't afford to hire one person for online advertising. We lost our competitive edge for that reason."
Because Hanover is a popular place for retirees, Kendal has a lengthy waitlist and could benefit from extra residential space if it chooses to house residents on the inn's property, town manager Julia Griffin said.
Hanover's atmosphere attracts many senior citizens, including alumni who want to be closer to their alma mater.
"College towns are stimulating places to live because they generate a lot of lectures and film series and the sorts of things that active seniors are active in participating in," Griffin said.
In addition to recreational activities, Hanover boasts proximity to Dartmouth-Hitchcock Medical Center, which attracts retired seniors who seek easy access to high-quality medical care, Griffin said.
The acquisition will aid Kendal's marketing efforts, since the inn is a waterfront property, Barton said.
If Kendal chooses to use the location to host residents, it may have to file to rezone the lot, Griffin said.
The inn's 10-acre property features a beach and enhanced loading docks, and is popular among rowers seeking accommodation in the Upper Valley.
Many alumni prefer to stay at the Chieftain because it is a cheaper and more scenic alternative to Hanover's other lodging options like the Hanover Inn, Griffin said.
The inn maintains a reputation for being a rustic "home away from home," Barton said.
"You can walk into the breakfast room in your pajamas, and no one is going to look funny at you," she said.
Barton, who worked as the Chieftain's inn keeper for 13 years, said the inn holds deep sentimental value for her family. Her children celebrated birthdays and hosted sleepovers there.
"It's a family business, and it's a home, but times are a changing," Barton said.
Representatives from Kendal did not respond to requests for comment by press time.
