The Border Motel
3004 North Main Street (US Route 5), Derby, VT 05829
Under new ownership and things have improved significantly. Rates still very reasonable. Not sure if the bar is or will be back.
dinner at the Landing...err East Side I think it is now, is fairly close in Newport City, and worth the trip.
If you sled, it is right on the VAST trail system and a quick hop into Canada.