East Hampton’s luxury hotel market is thriving, despite broader hospitality worries.
KSL Capital Partners bought the 96-key Marram in Montauk for $78.5 million, or $820,000 per key, from Bridgeton Holdings, according to a source familiar with the deal.
Bridgeton listed the resort at 21 Oceanview Terrace, along with the 25-key Journey East Hampton at 490 Pantigo Road, late last year. The Journey East Hampton was later taken off the market, according to a source.
Eastdil Secured brokered the transaction. KSL Capital declined to comment through a spokesperson.
While parts of New York City’s hospitality market are struggling, the Hamptons market is thriving.
Limited supply and restrictive zoning on new development have driven investor interest in the area. East Hampton zoning regulations ban chain hotels, and in 2015, it outlawed the conversion of hotels into nightclubs.
Bridgeton acquired the site of the 1960’s Atlantic Terrace Motel for $32.5 million in 2018. It renovated the property into a luxury resort, and added a South American cafe.
The Marram opened in early 2020. That same year, the town of East Hampton sued the resort for converting a bar and snack areas to a full-service restaurant without proper approvals. The suit was settled last year.
In addition to the East Hampton properties, Bridgeton also owns the Walker Greenwich and Walker Tribeca hotels in lower Manhattan.
East Hampton’s other high-end hotels have performed better than the industry average. A standout example in the wake of the pandemic came in New York landlord BLDG Management and Metrovest Equities’ $54 million renovations on boutique oceanfront hotel Gurney’s. The upgrades allowed Gurney’s to increase the money it makes on an occupied room by nearly 50 percent in just three years.