When I used to lead AMC trips, I would go up for the weekend and stay at Subsig. I was amazed that if I had a Saturday trip and a Sunday trip, both would fill, but there usually was no overlap whatsoever--completely different groups, other than us leaders.
I think most hikers want, or need, a day at home to do laundry, mow the lawn, see friends, and so on. So most hikers, I suspect, aren't staying up north at all, they drive up, they hike, and they go home.
This leaves us with the folks who go up for the weekend.
A lot of sociable people go to Subsig, heck it's $10 a night, or they stay at one of the hostels. I think very few camp, as a percentage. I suspect of the "frequent hikers" Subsig and the hostels take up the lion's share. For those who aren't frequent hikers, if they have young kids, there's the Highland Center, and without kids, there are some really lovely B&Bs or the Mt. Washington Hotel.
In between are motels, and it doesn't matter when I'm driving by them, very few of them ever seem close to capacity. I don't mean during bike week or the holidays, but, it's hard to see where motels fit in, especially if they aren't dead smack in the middle of North Conway or Lincoln.
The few times I have stayed at one, especially in the winter, it is near impossible to get hot water. Why would one stay at a motel when there are so many better options? Is it really surprising that Franconia is struggling? I just don't see what it has to offer hikers.
Brian
Brian