Construction is underway at the former Bailey Island Motel. (J.W. OLIVER PHOTO)

The Bailey Island Motel will not reopen for the 2022 season, as the owners transform its guest rooms into a pair of high-end, three-bedroom condominiums.

“We had a phenomenal season,” co-owner Jeffrey Raup said, with the motel at capacity most of the time. But the owners’ assessment of the business’s long-term prospects led them to change course.

The 63-year-old building needed major renovations and its modest size would make profitability a challenge, Raup said. The property’s water resources are not adequate for a dozen rooms, along with the owner’s residence and a neighbor’s home that draws water from the same supply. The motel ran out of water in July and August, Raup said.

Each of the new condominiums will measure 2,100 square feet, with three bedrooms and three bathrooms. “Each unit will look a little different,” Raup said, and each will involve additions onto the front of the building. The project has town approval, Raup said.

The 1958 motel sits on a 1.05-acre lot just south of the Cribstone Bridge, at the entrance to Bailey Island. Raup and his wife, interior designer Mindy Schwarz-Raup, bought the property from Paul and Rita Dube in March. The owners will continue to live on the property.

The property has a dock and three moorings, so each condo owner will be able to keep a boat there, Raup said.

Raup, who has a background in real estate development, is leading the construction himself, with Schwarz-Raup on design.