Fire (Island) sale: Palms Hotel hits the market

Property listed for $14M boasts 90% occupancy

Tri-State /
Dec.December 02, 2021 04:10 PM
(Facebook via The Palms Hotel Fire Island)

(Facebook via The Palms Hotel Fire Island)

Ready to run a luxury boutique hotel? There’s one on the market on Fire Island — a seven-building spread, in fact.

According to Newsday, the Palms Hotel in the Ocean Beach on Fire Island has been listed for $14 million. The listing includes the lease of a restaurant operated by the hotel owners.

The hotel is unusual in that it is an assemblage of various properties, according to Newsday. All but three of the guest rooms are owned, but three are leased properties. The owned rooms include the 20-room main building on Cottage Walk, the 13 bungalows on Bungalow Walk and the six rooms and a suite on Bay Walk.

The leased properties, meanwhile, include the presidential suite above the Flair House boutique and two guest suites at the Palms Bay East. The restaurant lease is for CJ’s Restaurant & Bar at 479 Bay Avenue.

The Palms is the largest luxury hotel complex in town, Newsday reported. It has been a seasonal operation in the summer, but there may be enough pent-up demand to increase its operating window.

According to the listing, the average rate in standard rooms is more than $500 per night, while the average rate for suites runs into the thousands. The listing also says the historical occupancy of the hotel is greater than 90 percent.

Abigail Medvin Mago and Alan Medvin of Fire Island Sales & Rentals have the listing.

The hotel market in Long Island’s summer communities includes some intriguing properties. Last month, two hotels hit the market in Montauk. The Sands Motel at 71 South Emerson Avenue, built in 1951, was listed for $45.9 million. Across the street at 84 South Emerson Avenue, the Ocean Surf Resort was listed for $25 million.

The Soloviev Group, meanwhile, is planning a winery and resort in North Fork. Stacy Soloviev, the ex-wife of Soloviev Group chairman Stefan Soloviev, is planning a 40-key boutique hotel on the Peconic Bay Vineyard in Cutchogue.

[Newsday] — Holden Walter-Warner





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