Montauk Motels Are Disappearing And Being Reborn as Luxury Goldmines

The Quiet Luxury Takeover in Coastal Towns

This summer, Offshore Montauk, a new 96-room luxury hotel, will open its doors on the former site of the budget-friendly Sands Motel. What once catered to beachgoers seeking simplicity is now home to curated amenities: ocean-facing rooms, a signature spa, private fire pits, and ADRs ranging from $700 to over $2,000 per night.

Montauk is not an isolated case.

From Joshua Tree to Tulum to the Oregon Coast, we’re witnessing a deliberate upgrading of the traveler base, targeting fewer guests, but far more profitable ones.

✦ Why This Trend Matters for Investors and Owners

The strategy is simple:
⦿ Buy underutilized, outdated motels with prime locations
⦿ Reposition with boutique design, elevated amenities, and exclusive experiences
⦿ Charge 3–5x previous ADR, without expanding the footprint

Luxury conversions are often faster and more profitable than ground-up development. And in many seasonal markets, it’s what travelers are now demanding.

➤ Travelers are chasing quiet luxury, intentional minimalism, and hyper-curated escapes, not generic resorts.

➤ OTA data shows luxury ADRs in transformed properties are growing 18–24% faster than traditional resorts in coastal destinations.

✦ FALLZ HOTELS™ Positioning

At FALLZ HOTELS™, we see this not just as a trend, but as a historic window of opportunity.

Here’s how smart hoteliers and investors can capitalize:

⦿ Scout Undervalued Coastal Motels
We track off-market listings that are ideal for boutique repositioning—especially in destinations where land is limited but demand is rising.

⦿ Use FH Competitive Growth Reports
Our reports analyze your property’s conversion potential—breaking down ADR lift, guest sentiment projections, and design ROI.

⦿ Attract Buyers via the FALLZ HOTELS™ Platform
List transformed or ready-to-reposition assets with us. Buyers are actively seeking luxury conversion deals they can scale.

⦿ Explore FH Verified™ Valuation Services
We help price reimagined properties based on design equity, not just comps—giving sellers the edge in negotiation.

Final Takeaway

The sands are shifting, literally. Where the Sands Motel once stood now stands a beacon of Montauk’s luxury future. The smartest hoteliers are moving fast to transform nostalgia into net worth.

Have a property with untapped luxury potential?
Request your FH Success Score™ or Boutique Conversion Strategy Session today.

➤ Explore off-market deals today. Contact us to gain access to exclusive listings.

Join the Movement: Register as a Hotel Owner/Seller or Buyer