Baron’s Cove, an iconic Sag Harbor hotel, will reopen in the summer with a new name and new management after a multimillion-dollar sale last year.
The hotel, which will be renamed Faraway Sag Harbor, will fall under the Faraway Hotels hospitality brand developed by Blue Flag Capital, Collared Martin Hospitality and Bain Capital Real Estate, according to a news release. Blue Flag Capital is a real estate private equity and development firm focused on hospitality, Collared Martin Hospitality is a luxury hospitality management company and Bain Capital Real Estate is a private investment firm.
The companies acquired the 67-room hotel and restaurant last summer for $66.5 million, according to public records. The property was previously operated by Cape Resorts, which also runs The Pridwin Hotel and Cottages on Shelter Island and has multiple hotels in Cape May, New Jersey.
Baron’s Cove will be reimagined “as an elegant compound” with gardens, patios and “poolside relaxation,” according to the release.
The site will also open a flagship restaurant called Zagara, inspired by Italy’s Amalfi coast, the release said.
A spokesperson for the companies declined to say how much will be put into renovations, but real estate services company JLL’s Hotels & Hospital Group announced in June it had arranged a $54 million refinancing of Baron’s Cove on behalf of Blue Flag Capital and Bain Capital Real Estate.
The three-year floating rate loan was secured through Blue Owl Capital-managed funds, according to a JLL news release.
“Faraway Sag Harbor is a natural next chapter in our coastal story, carrying forward the seaside charm, maritime heritage and thoughtful design we’ve honed in Nantucket and Martha’s Vineyard,” said Jason Brown, CEO and co-founder of Blue Flag Capital, referring to the company’s two other Faraway hotels in Massachusetts.
Sag Harbor Mayor Thomas Gardella said it would be beneficial for the village business community if the new restaurant or hotel at 31 W. Water St. stayed open year-round, a sentiment echoed by Sag Harbor Chamber of Commerce president Ellen Dioguardi.
A spokesperson for the new owners did not clarify whether the business would be open seasonally or year-round.
Blue Flag owns several other East End properties, including the Greenporter, Haven Montauk and Sunset Montauk, so the company is familiar with the area, said Dioguardi, who is also director of events at Express News Group and a longtime Sag Harbor resident who worked at Baron’s Cove more than 30 years ago.
Baron’s Cove was built in the late 1950s and renovated in 2015, offering amenities that include a seasonal saltwater pool, wellness center and tennis court. It’s also a waterfront property, Dioguardi said.
The property has historic ties to prominent creative figures like John Steinbeck, she said, and deep community roots that have led some in the village to express dismay at the name change.
Over the past decade, “the amount of change that Sag Harbor has seen has been kind of staggering, and I think people are definitely feeling that angst of a lot of change,” she said.
But, she added, “The only thing in life that’s consistent is change.”
Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.
