|
Getting your Trinity Audio player ready...
|
By: Don Driggers
Finding an affordable hotel room in the Hamptons has always been a challenging task, and recent developments indicate that it’s about to get even more difficult. According to financial and real estate sources, a group of wealthy investment firms is acquiring the few remaining budget-friendly hotels in the East End with the intention of renovating them and increasing prices.
Jennifer Gould of the NY Post reported extensively on The Hampton’s hotel situation
Among the prominent buyers in Montauk is Blue Flag Partners, a Boston-based development company that concluded a $35 million buying spree in the East End with a $15 million acquisition of Haven Montauk last month. Prior to that, Blue Flag had spent $13.5 million in December to acquire Sunset Beach Montauk, along with two adjacent parcels and three beach lots.
Jason Brown, the managing partner of Blue Flag, stated that this summer’s rates at Sunset Beach Montauk would remain similar to last year, ranging from $300 to $500 per night. However, he confirmed that prices would be raised in the future. Furthermore, the recent purchase of Haven Montauk, a 27-room boutique hotel, for $15 million suggests that significant price hikes are in the pipeline. The hotel is currently charging $621 per night for midweek stays, while weekend rates start at $1,291 per night, NY Post researched.
Real estate experts attribute the escalating prices to limited inventory and strict zoning laws that have hindered new developments. The Hamptons market has an ongoing demand for luxury hotels, and with fewer options available, private equity firms view the current prices as favorable for investment. The scarcity of land also makes it challenging to build new hotels, leading to a situation where prices are expected to continue rising.
In May, Gurney’s Star Island resort was sold for a record $149.4 million, and the historic Maidstone Hotel in East Hampton was purchased for $17 million. These acquisitions, along with Blue Flag’s buying spree, exemplify the trend of investment in the Hamptons hotel industry, the Post pointed out
Despite the increasing prices, industry insiders believe there is still room for growth and the creation of new hotels to cater to the continuous demand for Hamptons accommodations. The allure of the Hamptons as a popular summer destination remains strong, and stakeholders aim to strike a balance between expansion and preserving the area’s unique identity.
Amidst these developments, notable establishments in the Hamptons are hosting exciting events and collaborations. Gurney’s Montauk Resort & Seawater Spa is set to host Château d’Esclans, renowned for its rosés, for a series of wine-pairing dinners and beach-side bonfires. The Maidstone Hotel has partnered with Loulou Petit Bistro to open Loulou La Plage, a pop-up restaurant offering French cuisine and delightful cocktails.
Furthermore, entrepreneur Gianpaolo de Felice and Jack Brinkley-Cook have relaunched Rove as a travel service, offering free rides in branded Teslas provided by advertisers. The service is available in Montauk, East Hampton, and Sag Harbor, and the advertisers include Tutto il Girono restaurants and Casa Del Sol Tequila, NY Post reported.
As the Hamptons undergoes transformations in its hotel industry, visitors and residents alike can anticipate higher prices but also new and exciting experiences.
