A New Future for a Beloved Sag Harbor Hotel

A slice of local culture will become a story of the past as Baron’s Cove in Sag Harbor is acquired and reimagined by a boutique hotel brand. Seeking to embrace the coastal spirit of harbor-front community, the hospitality brand behind Faraway hotels looks forward to opening Faraway Sag Harbor in June 2026 with a fresh new face and signature style.

The luxury label, developed by Blue Flag Capital, Collared Martin Hospitality, and Bain Capital Real Estate, announced its reach beyond Nantucket and Martha’s Vineyard, adding their footprint to the idyllic waterfront village of Sag Harbor.

“Faraway Sag Harbor is a natural next chapter in our coastal story, carrying forward the seaside charm, maritime heritage, and thoughtful design we’ve honed in Nantucket and Martha’s Vineyard, now reimagined for a new harborside destination,” said Jason Brown, CEO and Co-Founder of Blue Flag Capital, a hospitality real estate private equity firm with more than $1 billion of assets under management.

The 67-room property will be refashioned into an exclusive haven, and the renovation will meld elegant ambience with a breezy feel. The landscape will include picturesque gardens, secluded patios, and a serene poolside oasis. Its array of rooms and suites span a palette of venues: the Signature Garden quarters open up to private lush gardens; spacious Harbor King suites; and double-height Loft Collection with sweeping views of the harbor. The refreshed property will also introduce new flagship restaurant, Zagara, inspired by Italian Amalfi coastal lifestyle.

“Faraway Hotels is exactly the kind of distinctive, experiential hospitality brand we believe is relevant to today’s consumer and positioned to thrive over the long term,” said Jared Melnik, a Managing Director at Bain Capital Real Estate. “We are excited to partner with Blue Flag and Collared Martin to support Faraway Hotels as it expands, bringing fresh energy to an iconic property while staying deeply connected to the community it serves.”

Bain Capital is one of the world’s leading private investment firms with approximately $185 billion of assets under management.

The original Sag Harbor resort (formerly known as Baron’s Cove) has decades of history tucked away in its storybook, as during the mid-20th century it became a prestigious yet earthy escape for notables such as Paul Newman, Truman Capote, Jackson Pollock and John Steinbeck. The iconic establishment evolved into a more upscale venue over time, and this current rebranding for Faraway Sag Harbor is arguably in line with its destiny.

A long-time resident of the area, Sag Harbor Chamber of Commerce president Ellen Dioguardi says the transition is bittersweet.

“I won’t deny there’s some melancholy. There’s so much history tied to Baron’s Cove,” said Dioguardi. “Change is difficult, but people will get beyond it. They’re altering the look of the place, not tearing down the whole building. Hotels are important to us here. We want visitors to have a place to stay.”

Dioguardi commented that during a recent event the new owners could not have been nicer, and they seem sincerely interested in being a part of the community.

“Look, they made a huge investment here. They even bought a building to house staff,” said Dioguardi. “We look forward to working with them.”

Dioguardi added that she hopes the restaurant will stay open year-round, which would be ideal for the locals. She also said they apparently plan on continuing live music on the weekends, which is also a big draw for the community.

Sharon Wyman, Discover Long Island COO, is optimistic about the transition.

“Sag Harbor is a cherished destination for visitors from around the world, and developments like this help ensure our high-quality tourism economy remains fresh, competitive, and forward-looking. Baron’s Cove has long been a staple in the Sag Harbor community however we look forward to this property’s next chapter and the opportunities it will bring to support local businesses and enhance the visitor experience to Long Island’s East End,” said Wyman.

Based on public records, the Faraway group purchased the 2.64-acre Baron’s Cove property last summer for $66.5 million. The hotel was previously run by Cape Resorts, a company also at the helm of The Pridwin Hotel and Cottages on Shelter Island, with multiple other hotels in Cape May, New Jersey under its wing. Blue Flag has also acquired Sunset Montauk, Haven Montauk and the Greenporter in the last few years.

Faraway Sag Harbor will be managed by Collared Martin Hospitality (“CMH”), which was established in January 2025 and oversees the Faraway brand along with a portfolio of stand-alone boutique hotels, restaurants, and cocktail clubs.