The oceanfront Marram Montauk sold in a multi-million deal last year — but for how much exactly?
According to Suffolk County deed transfers available late last week, the official price tag of the hospitality property at 21 Surfside Terrace shows it traded at $77.5 million, making it the most expensive commercial deal of 2022.
An affiliate of KSL Capital Partners, a private-equity firm based in Denver, Colorado, specializing in travel and leisure investments, acquired the 96-room boutique resort, paying nearly $808,000 per key.
“We are excited to offer visitors to Montauk refined, beachfront hotel accommodations that let them relax and unwind,” according to a statement issued from the firm this week.
KSL Capital Partners boasts many high-end resorts in the United States and the United Kingdom on its website, including the JW Mariott Essex House New York, the Viking Hotel in Newport, Rhode Island, the Belmond Charleston Place in South Carolina and The Grove Park Inn in Ashville, North Carolina. It also owns Squaw Valley and Alpine Meadows, two of the leading ski resorts in the nation.
“Following a $9 million renovation in 2018, we are continuing to invest in the hotel and are planning on improving our meeting space for weddings and events for the 2023 season,” the statement on Marram Montauk continued.
The property last changed hands when it was called the Atlantic Terrace resort. Another Delaware-based limited liability, Oceanview Terrace Hotel, paid $32 million for it in 2018.
The resort, located near downtown Montauk, then underwent a major renovation to modernize it. It was renamed Marram for the wild grass on the dunes surrounding the property. Derived from Old Norse language, marram is pronounced MAH-rom.
“We hope the local community has been able to sample all of the changes at the hotel. Mostrador, our seasonal restaurant, is a wonderful experience, catering not only to our hotel guests but the community at large,” KSL Capital Partners added in the statement.
After the 2018 purchase, Oceanview Terrace Hotel and Bridgeton Holdings, a foreign-based hospitality management and investment company that had an interest in the hotel and was also managing the restaurant were involved in a lawsuit with the Town of East Hampton over the use of a snack bar that the town said had been converted to a full-service restaurant without approval.
The two entities settled in June of 2021, according to The East Hampton Star.
Mostrador is described on the hotel website as an “on-site seasonal outdoor counter service café, which celebrates a refined approach to Latin American cuisine led by award-winning chef Fernando Trocca and restaurateur Martín Pittaluga of José Ignacio’s La Huella & Mostrador Santa Teresita.”
As for the hotel rooms, they go for $500 to $1,300 a night during the summer and $350 to $500 a night in the shoulder season, according to the hotel’s website.
The deal closed on May 20, 2022. The owner is listed as a Delaware-based limited liability company called Ocean View NY Holdings. Eastdil Secured brokered the transaction, according to The Real Deal.
Bridgeton Holdings still owns Journey East Hampton, a 25-room hotel at 490 Pantigo Road, which had been put on the market at the same time as Marram, but has since been removed.