NEW YORK CITY, New York—JLL’s Hotels & Hospitality Group announced that it has arranged refinancing for Baron’s Cove, a 67-room luxury boutique hotel in Sag Harbor, New York.
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.
Baron’s Cove includes 67 guestrooms, including lofted suites with panoramic harbor views and private garden accommodations. Built in the late 1950s and renovated in 2015, the property offers amenities including 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.
The financing package will be used for a comprehensive renovation, scheduled to begin in October 2025. The seven-month project will 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. The financing also provides funds to secure employee housing.
The hotel sits just 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 waterfront location near Sag Harbor’s marina, positioning it at the center of the area’s boating and yachting activities.
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,” said Davis. “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.”