A Classic Montauk Property Finds New Life as Hotel Corduroy

Workshop/APD and Ward + Gray join forces to conceive a relaxed boutique escape on Long Island
Published: June 12, 2026

Hotel Corduroy, a new boutique hotel from Blue Flag Capital, has opened in Montauk, New York.

Originally constructed in 1983, and the former site of Sunset Montauk, the 29-room property comprises three existing buildings that were retained and reworked by architecture studio Workshop/APD. Rather than pursuing a ground-up redevelopment, the design team focused on adaptive reuse, maintaining the overall massing and character of the structures while elevating circulation, scale, and guest flow.

Developed in partnership with Blue Flag’s in-house management company, Collared Martin Hospitality Hotel Corduroy marks the first of three East End openings the company has planned this summer.

Interiors that draw on Montauk’s coastal culture

Interior design was led by Ward + Gray, which infused the property with a layered, residential sensibility informed by Montauk’s coastal landscape and midcentury surf-era influences. Sun-faded hues, patina, natural materials, and tactile finishes create spaces that feel collected rather than curated, with references to 1960s coastal living woven throughout.

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The lobby is conceived as an informal living room, furnished with simple silhouettes and vintage pieces that create a relaxed, community-oriented atmosphere. A small retail component anchors the space, offering snacks, drinks, sun care, and apparel, including collaborations with Faherty, which also designed the hotel’s staff uniforms.

Each of the hotel’s 29 guestrooms reflect Montauk’s raw coastal character through layered textures, custom furnishings, and a muted palette shaped by salt air and sunlight.

Outdoor spaces at Hotel Corduroy

Outdoor areas play a central role in the property’s social dynamic. Exterior corridors are outfitted with seating, extending the guest experience beyond the room and encouraging casual interaction. Meanwhile, the lawn serves as the hotel’s primary gathering space, with sofas and loosely arranged lounge seating oriented toward open bay views.

Guests also have access to a private beach area at Sunset Beach, along with complimentary beach gear and bicycles for exploring Montauk and the nearby marina.

A growing East End portfolio for Blue Flag Capital

Hotel Corduroy marks Blue Flag Capital’s first opening in New York, expanding the firm’s portfolio beyond Nantucket and Martha’s Vineyard. Additional East End projects include Faraway Sag Harbor and Faraway Jackson Hole, set to open in June, and Oyster Estate in Greenport, which will debut later this summer.

“Every property we take on is an opportunity to honor what already exists while evolving it for today,” says Jason Brown, cofounder and CEO of Blue Flag Capital. “Expanding into Long Island felt like a natural next chapter for us.”