Montauk's Sands Motel, listed at $28M, purchased by hospitality group

Montauk’s Sands Motel, a longtime feature of the East End's bustling summer tourism scene, has a new owner with renovation plans, according to local real estate agents.

Sands, a four-building, 43-unit oceanfront complex, has been sold to Enduring Hospitality after hitting the market last year for $28 million. A sale price was not disclosed.

Located at 71 S. Emerson Ave., the 19,500-square-foot property is near the downtown area along Montauk Highway and features 360-degree views of the ocean and Fort Pond. The hotel’s buildings have one- and two-bedroom units that each have a balcony or deck, according to a property listing. Enduring Hospitality plans a major renovation after the summer. 

“There was a slew of interest from across the country, including private equity and hotel groups,” said Jeffrey Sztorc, a real estate agent who worked on the deal for Compass Commercial, the firm that marketed the property. “The quality of the location and what’s possible speaks for itself.”

Hal Zwick, Hamptons director of commercial real estate with Compass, said the firm was hired last year by the Hausman family,  which has owned and operated the motel for three generations.

Richard J. Hausman Sr., the longtime owner and operator of Sands, died in 2022 at 97, according to an obituary in the East Hampton Star. Hausman’s parents and brother built the hotel in 1951 and  added buildings over the years.

A sale fell through in 2022 with another brokerage firm, Zwick said.

The Hausman family declined to comment.

In a statement, Enduring Hospitality said the company’s goal “is to refurbish the existing hotel, centering on health and wellness, while safeguarding the authenticity of Montauk and its connection to surf culture.”

The hotel was partially closed during the 2023 summer season, Zwick said. It will be open to visitors this summer after the new owners do some minor upkeep and maintenance, he added.

“They’re going to do some painting and cosmetic work right now and open it as it has been for the summer,” he said.

Larger renovations are planned to begin after Labor Day and into the winter.

“They’ll introduce a new concept in the spring of 2025," he said.

The area has seen several notable hotel and hospitality properties hit the market in recent years. 

Last year, owners of seaside fixture Gosman’s Dock in Montauk listed their nine properties for $45 million, the second time they've tried to sell the complex in less than 10 years. 

Included in the portfolio is the 477-seat Dock restaurant, three other restaurants, six retail shops, four staff housing properties for seasonal workers, a wholesale fish and lobster business, a portion of vacant land and a 330-car parking lot.

The former Sunset Beach motel, along with two vacant lots and waterfront parcels on Montauk Harbor, sold last year for $13.5 million to investment firm Blue Flag Partners of Boston. 

In 2022, Bridgeton Holdings sold the 96-unit Marram resort for a reported $78.5 million to an affiliate of KSL Capital Partners, according to the real estate publication The Real Deal.