JLL’s Hotels & Hospitality Group has arranged a $54 million refinancing of Baron's Cove—a luxury boutique hotel in Sag Harbor, N.Y.—which will undergo a comprehensive renovation this fall.
JLL worked on behalf of the borrower—a partnership between Blue Flag Capital and Bain Capital Real Estate—to secure a three-year, floating-rate loan through Blue Owl Capital-managed funds.
The JLL Hotels & Hospitality team was led by Americas CEO Kevin Davis, managing director Mark Fisher, senior director Jillian Mariutti and director Connor Medzigian.
"Baron’s Cove presented a unique opportunity to finance a high-quality boutique hotel in an ultra-high-barrier-to-entry market that caters to an affluent clientele, backed by experienced institutional sponsorship," Davis said in a statement. "The Hamptons hotel market continues to demonstrate remarkable resilience with limited new supply and increasing demand from affluent travelers seeking luxury accommodations in prestigious coastal destinations."
Built in the late 1950s and last renovated in 2015, Baron's Cove features 67 guestrooms, including lofted suites with panoramic harbor views and private garden accommodations. The property offers a comprehensive resort experience with amenities that include a seasonal saltwater pool, lounge, complimentary bicycles and kayaks, a full-service wellness center, a tennis court and signature dining options at The Restaurant at Baron's Cove and The Lounge, according to the hotel.
The seven-month project is designed to enhance all aspects of the guest experience, including complete guestroom transformations, reimagined public spaces and upgraded exterior areas. The renovation will coincide with a strategic rebranding initiative and introduction of elevated food and beverage concepts, according to the company.
Located in the center of Sag Harbor, the hotel is roughly 11 miles from Southampton, seven miles from East Hampton and less than a three-hour drive from New York City. The property benefits from its prime waterfront location near Sag Harbor's historic marina, positioning it at the center of the area's boating and yachting activities, according to the company.