APP Real Estate
For sale

📍 1655 County Road 39, Southampton, New York, USA

Hotel for Sale in Southampton

$26,999,000

Overview
  • Bedrooms: 62
  • Bathrooms: 62
  • Parking: 30
  • Size: 16592 m²
  • Price: $26,999,000
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Description

An exceptional chance to own a 62-room hotel in the heart of Southampton, ideally located just minutes from world-class shopping, renowned restaurants, and pristine ocean beaches. This well-maintained property offers a full suite of guest amenities, including a spacious pool, bar, and tennis courts, making it a sought-after destination for visitors year-round.

Approved redevelopment plans are in place and ready for finalization, offering significant appreciation potential for investors or hospitality operators looking to reimagine and elevate the experience. This includes a spa, a 72-seat restaurant/bar, and 60 hotel rooms. Whether expanding a portfolio or launching a flagship property, this is a rare opportunity to invest in one of the most iconic and high-demand locations in the Hamptons.

Local hotel market context

  • Southampton and the Hamptons in general are among the most expensive beach destinations in the USA, with daily rates often exceeding 1,000 dollars in high-end hotels during peak season.

  • The high season, which was previously basically summer, now extends from April through December due to remote work and changing habits, increasing annual occupancy and revenue potential.

  • The region has strict zoning and licensing restrictions for new construction, which limits the creation of new hotels and increases the value of already operational assets.

Hotel investment trends in the Hamptons

  • In the last five years, more than 500 hotel rooms have changed hands in the Hamptons, with a focus on buying old motels/hotels, renovating, and repositioning them as year-round luxury escapes.

  • There is a clear trend of replacing classic motels with luxury hotels featuring spas, high-end gastronomy, and personalized experiences, attracting a higher-income audience and raising daily rates.

  • Recent projects in Southampton include a new 40-unit all-suite hotel with a pool and staff housing, approved with tax incentives, which shows institutional support for well-structured hospitality ventures.

Points to evaluate as an investor

  • High entry ticket: the value per room is in line with well-located assets in luxury markets; to make a return viable, a repositioning project is usually necessary (capex in renovation, new branding, ADR increase).

  • Appreciation potential: restriction of new supply and strong demand for high-standard lodging favor long-term appreciation, provided the operation is well-managed.

  • Common strategy in the region: buy an existing hotel/motel, modernize rooms and common areas, create a boutique/luxury identity, and operate with a focus on extended occupancy (off-season) and corporate or social events.

Practical next steps

  • Analyze the offering memorandum of The Atlantic (or other hotels for sale) to see occupancy history, ADR, RevPAR, operating costs, and cash flow projections.

  • Consult our specialized Hamptons broker to understand the HB zoning rules of the land, expansion possibilities, and regulatory limitations.

  • Compare this asset with other hotels on County Rd 39 (such as the Southampton Long Island Hotel) to have a reference for standards, daily rates, and positioning on the same main access road to the village.

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