KSL Capital Partners Eyes $100M Deal for Marram Montauk

9 minutes read

KSL Capital Partners hopes to score a tidy profit with a sale of a prominent Montauk hotel.

The Denver-based investor is marketing the Marram Montauk at 21 Oceanview Terrace, Bloomberg reported, tapping Eastdil Secured Savills to lead the process. An asking price wasn’t disclosed, but KSL is reportedly seeking around $100 million for the property, or more than $1 million per room.

Four years ago, KSL bought the 96-key property for $78.5 million, or $820,000 per key, from Bridgeton Holdings. Bridgeton listed the resort, along with the 25-key Journey East Hampton at 490 Pantigo Road, the year prior; the Journey East Hampton was later taken off the market.

KSL and Eastdil Secured declined to comment to the publication. Eastdil Secured brokered the 2022 sale of the property as well.

Bridgeton acquired the site of the 1960’s Atlantic Terrace Motel for $32.5 million in 2018. It renovated the property into a luxury resort and added a South American cafe. The Marram opened in early 2020. That same year, the town of East Hampton sued the resort for converting a bar and snack areas to a full-service restaurant without proper approvals. The suit was ultimately settled.

In trying to sell four years after the acquisition, KSL is seeking to take advantage of the booming luxury hospitality market. In September, the daily average rate for a luxury room on Long Island was $494 per night, according to CoStar, up 10 percent year over year.

Elsewhere, KSL just acquired the 373-room Ritz-Carlton, Laguna Niguel in Orange County for an estimated $600 million. The transaction represents a significant price increase from its 2016 sale of $317.2 million to Anbang Insurance Group.

The property underwent a $50 million renovation last year and KSL affiliate Peregrine Hospitality will manage the resort.

The last notable Montauk hotel sale came in 2024, when Enduring Hospitality purchased the 43-key Sands Motel for $23.5 million.

— Holden Walter-Warner