Those who haven’t ventured to the Hamptons for an overnight stay in three years are likely bound for a sticker shock.
The average hotel price for the first five months of the year was $1,240.17, according to an analysis from Bloomberg. That price represents a 51 percent increase from the same period in 2019, when the average was $821.24.
The figure comes from Google data scientists commissioned by Bloomberg to look at the costs of four- and five-star hotels across seven popular summer luxury markets. The outlet also examined mid-July rates for popular hotels in each of those markets, though those are known to fluctuate at a moment’s notice.
Mid-July room rates for some of the luxury options in the Hamptons sit well above the five-month average.
At Gurney’s Montauk, a customer could pay up to $1,753 for a deluxe oceanfront king room. The 149-key hotel happened to be situated perfectly to cope with the pandemic, located within driving distance for some and one of only a couple of full-service Hamptons resorts abutting the Atlantic Ocean.
At Marram Montauk, it’s a different story. Room rates at the chic hotel are as low as $833 per night in mid-July. KSL Capital Partners recently purchased the 96-key property for $78.5 million.
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Of the seven markets analyzed, the Hamptons had the second-largest surge in average room rates in the last three years. The only market to see a bigger increase was Miami, where room rates increased nearly 56 percent.
The Hamptons hotel market is unique, in that many people who decamp to the area for the summer choose to go the route of renting a home or property, rather than stay in a hotel. While hotel rates are rising, the rental market in the region is slumping.
A rise in the supply of rental properties and drop in the number of renters has weakened the market for owners. Miller Samuel CEO Jonathan Miller said median rental prices in the Hamptons fell 26 percent in the first quarter, while some are going so far as to slash asking rents on their properties by 30 percent or more.
[Bloomberg] — Holden Walter-Warner