The Real Deal New York

East End hotels are summer-ready after slick renovations

Pop-up concepts and luxe room redesigns freshen up beachy lodgings, but supply is still limited
By Donna M. Airoldi | July 05, 2017 12:00PM

Village Latch Inn in Southampton

With high demand and slim supply, it’s no surprise that rooms on the East End during the summer season go for a premium and sell out quickly, especially on the weekends.

“Lodging in the Hamptons is very limited,” said Kristen Jarnagin, CEO of the Long Island Convention & Visitors Bureau. “As per usual, it’s booked up from what I can tell far in advance.”

Still, the East End has seen some properties add rooms in recent years, such as Gurney’s Montauk Resort, while others have re-entered the market after extensive renovations, such as the White Fences Inn.

During last summer’s peak month, August, Suffolk County occupancy reached 83.2 percent, while average daily rates spiked at $189.19, according to travel analytics specialist STR. However, hotels actually in the Hamptons typically go for $250 a night and up — rooms at the White Fences Inn were $675 in late June — and the occupancy rates are higher. (STR does not separate the Hamptons from its county data.) That compares to average national figures of 70.2 percent occupancy and a room rate of $125.48.

While a rise in Airbnb rentals is one way to help meet demand, it also poses challenges. “It’s difficult to regulate, and there aren’t the same restrictions and taxes put on those properties as our hotelier and B&B owners have to face,” said Jarnagin. However, in the last year, many towns in the area have passed laws and upped the enforcement of others to collect some of those taxes (see page 18 Airbnb story). And the influx of people “does benefit the businesses and restaurants,” Jarnagin added.

As summer kicks into high gear, The Real Deal takes a by-the-numbers look at the East End hotel market.

$10 million

Cost to purchase the former Oceanside Beach Resort (nicknamed “Smiley’s”) in Montauk. The spot reopened June 8 with 30 rooms and a new name — Hero Beach Club. Season rates range from $245 to $685 per night.

8,918

Number of hotel rooms available in Suffolk County as of April, per STR.

2

Number of years it took to renovate the 67-room Baron’s Cove in Sag Harbor. Rates for summer 2017 are between $499 and $1,269.

19

Number of rooms newly revamped and available at Ruschmeyer’s in Montauk, which sold this winter after two years on the market. WorkEatPlay, a startup that repurposes unused spaces for daytime co-working, took over management of the property in April. It’s the fi rst hotel in the company’s management portfolio. Designer Michael Kramer, who was behind the revamp of Gurney’s Montauk Resort, renovated the rooms. The hotel will also feature new pop-up shop space. Rates range from $210 to $700 per night.

50

Number of years since Montauk’s famed Surf Lodge first opened. The lodge hosts a weekend concert series through Labor Day featuring artists such as G. Love, Lupe Fiasco, Jenny Lewis, Ben Harper and others. Rates range from $250 to $1,850 depending on room type and time of year.

23 million

Amount paid by the Beechwood Organization in 2016 for the Village Latch Inn in Southampton. The company has refurbished 20 of its 67 rooms and is offering them temporarily as part of the Latch Pop-Up Inn this summer while waiting for permits to convert some of the other rooms into condos. Rates range from $125 to $660 per night.

30,000 square feet

The size of the Seawater Spa at Gurney’s Montauk Resort, which is getting an upgrade after the current season. The spa has the only indoor ocean-fed seawater pool in North America, according to the resort. It also debuted 42 redesigned oceanview rooms last season. Summer rates start at $920 per night.

45

Number of newly renovated rooms at the Sound View Inn in the North Fork’s Greenport. Ten more will be completed over the winter. The hotel is also getting a new restaurant, Halyard, opening in July. Rates start at $340 per night during the summer.

1774

Year the foundation and fi rst fl oor of the Hedges Inn were originally built in East Hampton. The owners completed a $4 million, eight-year renovation to the 13-room property in 2016. The inn is on the National Register of Historic Places. Rates range from $250 to $1,300 depending on the season.

$750,000

Amount spent to renovate the luxurious White Fences Inn in Water Mill, according to owner Liz Brodar. The B&B has become known for its three-course breakfasts, Rates start at $330 per night off-season, $795 during peak season.