Hotel Corduroy, a new boutique hotel from Blue Flag Capital, has officially opened its doors in Montauk.
Owned by Blue Flag, the hospitality group behind acclaimed hotels including Faraway Martha’s Vineyard and The Beachside, Hotel Corduroy marks the brand’s first boutique outside of Martha’s Vineyard and Nantucket. The company also purchased Baron’s Cove in Sag Harbor in a $66.5 million deal in 2024.
The 29-key property, the former Sunset Montauk at 540 West Lake Drive, has been transformed into a design-forward retreat, said to be inspired by the town’s surf culture, maritime history, and Atlantic landscape.
“Montauk’s authenticity stems from its deep connection to the ocean, the natural landscape, and the strong sense of community that has long defined the town and separated it from the other Hamptons villages and hamlets,” Eric Brown, CIO of Blue Flag Capital, tells Behind The Hedges. “The surf culture is an important part of that story, and it inspired us, along with the long history of creatives drawn to Montauk. Ultimately, it’s the relationship between people and place that gives Montauk its character. That balance between ocean and nature, culture, and community shaped Hotel Corduroy and is reflected in the design, property, and our approach with guests.”
The hotel, designed in collaboration with Ward + Gray, features interiors with layered textures, vintage furnishings and sun-faded tones reminiscent of nostalgic 1960s coastal living, according to information on the opening. The outdoor space offers lounge seating, yard games and firepits overlooking the water.
There are “Subtle references to the town’s surf heritage, along with organic textures, natural materials, and a lived-in sense of patina throughout the property, shaped the overall design approach,” Brown says.
Blue Flag spent more than two years developing a concept and design narrative that felt unique and true to Montauk, he explains. “Our vision was: what if a group of friends stumbled upon this hotel and built their own surf commune that became a gathering place for their friends and greater community? That idea informed everything from the colorful design and communal lawn to the branding and guest experience, and we think it really separates us from the rest of the hotels in Montauk and the Hamptons.
Blue Flag also owns a large portion of the new Sunset Beach, which is just across the street from the hotel, “and is outfitted as a private seating area with beach chairs, loungers and umbrellas reserved only for our guests.”
Also, the company hopes the central lawn will be home to retail pop-ups and brand collaborations this summer.
Asked why Blue Flag chose Montauk to open its first New York hotel, Brown says, “It’s a combination of long-standing demand and a shift in how people want to travel. The East End has always been a legacy leisure destination, but there’s a growing appetite for more design-forward, experience-driven hotels that feel distinct from one another. To us, Montauk separates itself from the rest of the Hamptons with its more independent and laid-back culture, and we wanted to honor that through our take on East End hospitality.”
As for other Blue Flag properties on the East End, Baron’s Cove will reopen as Faraway Sag Harbor in June with multiple dining options and a complete reimagining of the property, and on the North Fork, Oyster Estate will open in Greenport in late summer, following an extensive renovation of the former Greenporter Hotel.
He continued, “I see many places in Montauk offering a night out, but we want Hotel Corduroy to be more of a home base to gather and linger. The property has an amazing central lawn which really drew us to the hotel – we imagined it as a place where guests could come together and connect throughout the day and night.”
The lobby retail shop provides snacks and apparel from brands like Faherty, the company that also outfitted Corduroy’s uniforms, plus access to a private area of Sunset Beach.
“We hope guests immediately feel a sense of connection, not just to the hotel, but to the spirit of Montauk. From the moment they arrive, we want it to feel welcoming, relaxed, and thoughtfully designed in a way that feels personal. Ultimately, we want Hotel Corduroy to feel like ‘their place’ in Montauk — somewhere they can’t wait to come back to.”
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