Iconic hotel under new management

An iconic hotel on P.E.I.'s North Shore will have a new operator this summer - P.E.I. Tim Hortons franchise owner Danny Murphy.

An iconic hotel on P.E.I.'s North Shore will have new operators this summer after 59 years.

It'll be run by the owner of the Tim Hortons franchises on PEI, Danny Murphy.

The Dalvay By-The-Sea hotel was originally built as a cottage in 1895 by a wealthy Scottish-American oil tycoon. It was also owned by a prohibition rum-runner in the 1930s who wanted a legitimate business to cover his illicit activities, and eventually—the federal government.

Dave Thompson's family has operated the hotel under a lease with Parks Canada since 1959.

Now, after some tough tourist seasons, they're transferring that lease to Island businessman Danny Murphy.

Dalvay is just down the shore from another high-end Murphy property.

"With Stanhope Bay Resort and Dalvay by-the-Sea together, we have a great sales team in our hotel division both on and off the Island. We can promote it through our other hotels. Just a whole bunch of things we can do together, and drive business into the properties."

Murphy's company—D.P. Murphy Inc.—also operates Wendy's, Holiday Inn Express Hotel & Suites, Super 8, Hampton Inn & Suites by Hilton on the Island.

Murphy said Dalvay is unique and he doesn't plan to interfere with what makes it special.

The Murphy's lease will last for 20 years, and the Thompsons say that will mean Dalvay By-The-Sea will be a viable business into the future.