An $11 million redevelopment project will bring a new boutique hotel to Westhampton Beach.
Construction is expected to start in September on the project from Melville-based Peconic Equities that will transform the former Grassmere Inn into a 16-key luxury hotel called Seven Beach Lane, which is also the address of the property.
The redevelopment project will restore the original inn and create a new, modern addition to the back of the building, connecting the old historic style with contemporary design.
Amenities at the new hotel will include an outdoor pool and bar, as well as an indoor restaurant and lounge for hotel guests. Located on a 1-acre property in the center of Westhampton Beach, Seven Beach Lane is a stone’s throw from downtown restaurants, shops, and galleries. It is also less than two miles from Rogers Beach on Dune Road, a popular public beach that serves the Westhampton area.
“In the past several years there have been a growing number of ultra-luxury boutique hotels opening in the Hamptons, catering to high-end clientele looking for a quick escape from the city,” said Corey Gluckstal, principal of Peconic Equities. “We are excited to open the first luxury hotel in Westhampton Beach, inspired by the local history and natural surroundings, but with modern amenities for today’s wellness-minded guests.”
The new Westhampton Beach hotel is designed by Patchogue-based bld Architecture and Melville-based Beth Donner Design is its interior designer.
Seven Beach Lane will be managed by Life House, which operates other boutique hotels in Nantucket, Martha’s Vineyard, the Berkshires and the Catskills. Life House, which has raised nearly $100 million in backing from top real estate and technology investors including JLL Spark, Kayak, Thayer Ventures, Tiger Global, and Inovia, currently has more than 60 hotels signed or open across the U.S., Mexico and Canada.
“As we continue to expand our portfolio of luxury properties, we have proven at scale that technology can empower our staff to elevate the guest experience through personalized and seamless service,” Bryan Dunn, managing director and head of growth at Life House, said in a company statement. “We are thrilled for the opportunity to collaborate with Corey’s experienced local team to deliver a locally-rooted destination to guests and residents of Westhampton Beach, which has long been underserved by quality hospitality options.”
The principals at Peconic Equities have been involved in more than $500 million worth of transactions over the last five years, including land acquisitions, self-storage facilities, multifamily development, hospitality, and mixed-use projects. The company also owns The Fire Island Beach House, a 38-key oceanfront hotel located on Fire Island, which was purchased and renovated in 2020.
Gluckstal says he is bullish on Westhampton Beach.
“Village officials and residents have made great investments over the past several years to improve its infrastructure and foster smart development such as this project,” he said. “Main Street is vibrant, with great parking and access from all directions. I think our hotel will contribute a tremendous amount of life to the local community and help them achieve their goals as being one of the best Hamptons, if not the best.”
Peconic Equities will be seeking economic incentives from the Suffolk County Industrial Development Agency to assist in the hotel project. Construction is expected to be completed by the end of next year.