Lloyd Goldman’s Gurney’s Montauk Resort and Seawater Spa, developed in 2014, initially thrived during the pandemic as a local getaway, but has faced significant challenges in recent years. Despite a $54 million renovation and a $16.4 million spa addition, occupancy rates have steadily declined from 71% in 2021 to 59% in 2023. A $218 million loan was placed into special repayment after Goldman failed to meet mortgage obligations. Factors contributing to this downturn include shifting travel preferences post-pandemic, seasonal demand fluctuations, and increased competition as air travel surged in 2023. The resort’s financial struggles are exacerbated by winter cash flow issues, prompting past sales of other properties and raising questions about Gurney’s future. Goldman must now consider securing loan extensions, which could strain the resort’s finances further.
Source link
