Hotel Corduroy, a new boutique hotel from hospitality investment firm Blue Flag Capital, is now open at the edge of Montauk just ahead of the summer season, introducing a design-forward coastal retreat rooted in the town’s surf culture and creative spirit. Developed in partnership with in-house management company Collared Martin Hospitality, the 29-room hotel is a thoughtful reimagining of the former Sunset Montauk, bringing a fresh perspective to one of the East End’s most storied seaside destinations.
Originally built in 1983, the property has been transformed in collaboration with interior design firm Ward + Gray into an intimate, high-design retreat. While the interiors are entirely new, architecture by Workshop/APD preserves the site’s three original buildings, maintaining the character of the existing structure while subtly elevating the overall guest experience.
Inspired by Montauk’s layered history, Hotel Corduroy draws from the area’s surf culture, maritime craft, and Atlantic landscape. Interiors feel collected and quietly expressive, with layered textures, sun-faded tones, and subtle references to 1960s coastal living. The lobby sets the tone for the rest of the hotel, conceived as an intimate living room with simple, functional forms and vintage pieces that recall the ease and informality of a nostalgic surf-era atmosphere. A curated retail shop completes the space, featuring a selection of snacks, drinks, sun care, and apparel from brands such as Faherty, who have also outfitted Corduroy’s uniforms.
Outdoors, the Lawn serves as the social heart of the property, where sofas and loosely arranged lounge chairs invite gathering throughout the day against sweeping views of the bay. Guests have access to a private beach area at Sunset Beach, along with complimentary beach gear and bikes for exploring Montauk, including the nearby marina.
“We’ve always felt Montauk stands apart from the rest of the Hamptons with its independent, laid-back, and free-spirited energy, and that’s exactly what we set out to capture with Hotel Corduroy. Drawing inspiration from the town’s creative surf culture and strong sense of community, the property was designed as a place where guests can come together, settle in, and feel at home,” said Eric Freitas Orford, Managing Director, New York.
Each of the 29 guest rooms reflects Montauk’s raw coastal character, with layered textures, custom furnishings that feel collected over time, and a sun-faded palette evoking years of exposure to salt air. Exterior corridors are outfitted with seating, creating moments for morning coffee, sunset drinks, and spontaneous connection.
“Every property we take on is an opportunity to honor what already exists while evolving it for today,” said Jason Brown, Co-Founder and CEO of Blue Flag Capital. “Expanding into Long Island felt like a natural next chapter for us. We couldn’t be more excited to continue our focus on destinations with a strong identity and long-standing demand, where we can thoughtfully reinvest and help restore a deeper sense of place for both guests and the surrounding community.”
Marking Blue Flag’s first opening in New York, Hotel Corduroy expands the brand’s design-driven portfolio beyond Nantucket and Martha’s Vineyard. It also signals the beginning of a broader East End presence, with Faraway Sag Harbor set to debut on the waterfront this June, followed by Oyster Estate in Greenport later this summer. Blue Flag and Collared Martin will also bring the Faraway Hotels brand to Faraway Jackson Hole in June.
