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Baron’s Cove Hotel in Sag Harbor, NY – Image Credit: Cape Resorts
JLL’s Hotels & Hospitality Group has arranged a $54 million refinancing for Baron’s Cove, a 67-room hotel in Sag Harbor, New York, to fund a comprehensive renovation starting in October 2025.
JLL’s Hotels & Hospitality Group has secured a $54 million refinancing package for Baron’s Cove, a hotel located in Sag Harbor, New York. The refinancing was arranged on behalf of the borrower, a partnership between Blue Flag Capital and Bain Capital Real Estate, through funds managed by Blue Owl Capital. The loan is structured as a three-year, floating-rate agreement.
Baron’s Cove, situated at 31 W Water St., comprises 67 guestrooms, including suites with harbor views and garden accommodations. Originally built in the late 1950s and renovated in 2015, the hotel offers a range of amenities, including a seasonal saltwater pool, a wellness center, and various dining options. The new financing will support a renovation project scheduled to begin in October 2025, with a duration of seven months. This renovation project will transform guestrooms, public spaces, and exterior areas, alongside a strategic rebranding and the introduction of new food and beverage concepts.
The refinancing also includes provisions for employee housing, addressing operational needs in the Hamptons’ high-cost market. The hotel is situated in Sag Harbor, a village renowned for its affluence, and is conveniently located near the area’s marina, a hub for boating activities. The Hamptons region attracts approximately seven million visitors annually, with Sag Harbor becoming a year-round destination due to the presence of permanent residences established by wealthy New Yorkers.
JLL’s team for this transaction included Americas CEO Kevin Davis, Managing Director Mark Fisher, Senior Director Jillian Mariutti, and Director Connor Medzigian. The refinancing supports the hotel’s position in a market with limited new supply and increasing demand for accommodations.
