Hamptons Hotels Go on the Block

SOUTHAMPTON, NY-Massey Knakal Realty Services is marketing a trio of hotel properties in this tony resort community, following the bankruptcy filing last month by owner Hampton Resorts & Hospitality. Robert Knakal, chairman of the investment sales firm, tells GlobeSt.com the sale is being conducted under an agreement between HRH and its lender, and it’s subject to a bankruptcy court order.

In a statement issued in June, HRH attributed the bankruptcy filing of its three properties—the Atlantic, the Bentley and the Capri, all located here—to its inability to meet a maturing mortgage loan. HRH has owned and operated the properties since 1997.

Combined, the three hospitality properties span almost 10 acres along Route 27, the major thoroughfare through the Hamptons, and contain 132 keys, about 43% of the hotel market in Southampton, according to Massey Knakal. The Capri formerly was home to the Hamptons outpost of the Pink Elephant nightclub, which will be deliver vacant. A Manhattan location was recently renamed Pink.

According to a release from Massey Knakal, the properties are geared toward “a wealthy, sophisticated, celebrity and professional clientele in addition to servicing families, photo shoots, corporate sponsors, movie premieres, weddings, fundraisers, social events and high end contractors who book for extended periods of time.” Knakal says in the release that each property is likely to be sold separately, “as they each have unique characteristics. However, the seller will also consider offers for the entire portfolio.”

Knakal tells GlobeSt.com “it’s too soon to tell” what the properties will fetch. A bankruptcy court sale is scheduled for November, although Massey Knakal says stalking horse bids will also be considered. An industry source says the combined selling price of the properties could reach the mid teens.