“Total excitement. Fantastic. Finally.” With those words, Flagler Beach Mayor Patti King summed up the response to today’s opening of Compass Hotel by Margaritaville in the heart of Flagler Beach, more than half a century after its three-story predecessor in the same spot closed its door on its last guest.
The land next to Veterans Park had been vacant since, alternating between a parking lot, a wasteland and a farmer’s market in its best days. How the new hotel came to be started with a glimpse. Manoj Bhoola was driving east over the Flagler Beach bridge over four years ago when, at its apex, he saw the city’s urban core lounge its way to the ocean and thought: wouldn’t that be a good place for a Margaritaville hotel.
That turned into a vision that turned into a $17 million investment, and a downtown remade. (An earlier version of this article had incorrectly reported the amount as $27 million.)
Today, to the delight of city leaders betting big on the hotel’s economic spur and to the relief of residents who endured 15 months of construction, Bhoola, the developer and manager of Ormond Beach-based Elite Hospitality, led the ceremonial ribbon-cutting on the fifth such Compass Hotel his company has built in Florida.
You could tell, Palm Coast-Flagler Regional Chamber President John Phillips said, that Bhoola and his team had the ribbon-cutting down to a science: the moment the ribbon was cut, Jimmy Buffett’s “Margaritaville” filled the air like a shower of audible confetti.
“It speaks volumes for our community that the first hotel to be built in Flagler County in 15 years was built in Flagler Beach,” City Manager Dale Martin told an invited crowd of a few dozen in the hotel lobby, between the bar and the reception desk.
Only the mayor had been invited among the city’s commission members, but former Mayor Suzie Johnston was there–appropriately enough, since it was on her watch that the project was born.
“You know what’s really nice is seeing the ribbon being cut on one of the large projects in Flagler Beach,” Johnston, who now chairs the city’s planning board, said. “We have the hotel, the re-paving of A1A, and the pier. It’s nice to finally have a check mark next to something being completed.”
The hotel is having a ripple effect on neighboring businesses, Johnston said, pushing them to renovate, to expand, to raise their game, and to open the way for additional businesses. “It sets a very good benchmark for other businesses currently and coming into Flagler Beach,” the former mayor said. “It’s been nice to be a part of the project, from the groundbreaking to the ribbon cutting.”
The 100-room, four-story hotel employs roughly 80 people, the majority recruited from Flagler Beach and Palm Coast. It took in its first guests today and opened its 120-seat Salty Rim Bar and Grill, along with its twin 120-seat rooftop bar and its views on an Atlantic horizon glittering a few waves further than the 12 miles anyone can see from ground level.
Nine margaritas are on offer, with names like “Who’s to Blame” (with triple sec), “Last Mango in Paris” (Cointreau), “Midnight Blaze” (Ole Smoky Blackberry Moonshine), and so on. There are a couple of dozen beers–the standards plus a few crafts, though Todd Connell, vice president of beverage operations for the company, says choices start small and grow with time. The restaurant fare is mostly island-comfort foods–blackened this, crispy that, and grant your scale a brief suspension of disbelief.
The gift shop downstairs (“Live Life Like a Song”) is a flare of mostly primary-colored and beach-themed t-shirts, hoodies, tote bags, lifeguard hats, bucket hats, caps, towels, plus the obligatory tumblers–otherwise known as “big dumb cups”–glasses, mugs. The guest rooms don’t have that grasping vastness of gaudy chains but trend rather to beachside coziness, as if to give the impression that each room were its own cottage. The rooms with ocean views orient the beds that way, so you can see the sunrise from under the covers. There will be sunrises.
“It’s a great day for the city of Flagler Beach and for all of Flagler County to have a wonderful new property here,” Phillips said. “But especially with a nationally recognized brand like Margaritaville, I think that’s a huge step forward for all of us: great recognition of success and good things that are coming here not only to Flagler County but specifically to Flagler Beach.”
Phillips had known Bhoola for years in Volusia County, where Phillips used to be based. Bhoola has been keeping an eye on the odd economic climate of the last hundred days or more–the uncertainty, the tariffs (which, he said, would cost a new hotel 25 percent more if it were built today).
“We’re nervous about it, but at the same time, we’re long-term investors,” Bhoolah said. “Most or all of my family’s assets that we started 26 years ago, we still own and manage. So we have a long-term investment strategy with my family.”
He’s also aware of the recent decline in international tourism into the United States–a nearly 12 percent decline in March, compared to a year earlier, with a 7 percent decline projected for the year. That may not have as much of an effect on a hotel like Compass in Flagler Beach. “Probably 80 or 90 percent of our business is in the state of Florida, or within a 200-mile radius of driving,” Bhoola said. “So we don’t really cater to international travel.” He expects only 5 percent of the tourism business locally to be international.
The project survived a few rough periods in its 15 months of construction, early on drawing flak from city commissioners and some residents for allegedly exceeding the permissible construction height, though engineering plans approved by the city’s planners had signed off. “The building department was excellent to work with, and they understood that we only built what was approved originally,” Bhoola said. “As long as you have that understanding, you don’t worry about people trying to change their roles later.” The City Commission has since amended its ordinance to clarify height restrictions.
More recently, commissioners were critical of contractors not cleaning up after themselves or overstepping their boundaries, with one commissioner singling out the hotel’s contractors. The excavation of a water main in an unrelated issue on South 2nd Street, closing that street just south of the hotel after it had been closed in front of it for 15 months, hasn’t made things easier.
None of those issues were in evidence today. Nor were the commissioners.
Dennis C Rathsam says
SOOOOOOOOO OUT OF PLACE!!!!!!
Kath says
100 rooms, so let’s say 2 vehicles a room. =200 cars . 80 employees + 80 =280. Salt bar 120 seats ,roof top bar 120 = what’s that 520 cars not counting restaurants. And gift shop. I’m so glad you thought out parking. And screwing other business. As well as county residents that would love to spend some time at the beach that ,they All pay taxes. Bad enough it looks horrible. Doesn’t fit in the area. Blocked the view .do us all a favor stop passing building permits. You don’t know what your doing. That’s like it’s 2025 the average house has 3 to 4 cars not counting company visiting. Don’t park in yard or road. What are you people thinking 🤔. You haven’t even seen all of these homes built. You have problems with water sewer ,channels. Traffic is all ready a night mare. Just add more bars to mix more drunks on the road. You should all be so proud of yourself. And know you want to CHARGE PEOPLE TO PARK AT THE BEACH ⛱️ CAN’T MAKE THIS SH** UP
JimboXYZ says
Might do better for attracting tourists for the Flagler Music Writer’s Weekend. Not sure how the Flagler pier being rebuilt will affect it’s bottom line for the +/- year that the closing down since 2024 & eventual project start to completion will take projected in Spring 2026 ?
Looks great in contrast to the retro era architecture Flagler Beach has always been. Almost out of place ? Let’s hope they don’t do what Daytona Beach has evolved into for the Marriott/Hilton & Daytona Civic Center has become. The boardwalk there will disappear for the arcade games, games but that was replaced by the Daytona Lagoon.
tulip says
I t looks really nice but I have 2 questions. Where is everybody supposed to park and what are the room prices?
Bill Boots says
Downtown DESTROYED!
Jeff says
I still find it hard to believe people crying, moaning and complaining about it when there was a hotel there previously and all that was there since the early 1970s was a vacant dirt lot. I’m glad it was built. About time something went in there.
t.o. Doug says
Quite a compelling origin story there: guy looks over and thinks Margaritaville hotel should be there. Absolutely gripping narrative… 😂
Just Saying says
Sorry, I can’t get excited about this place, it just isn’t Flagler Beach.
Not to mention how they screwed us with the fourth floor.
And are probably going to screw us with their littoral rights on the beach.
Every time I cross the bridge I say, I hate that place.
Won’t see me there.
Bella says
Beach side and very glad to finally see some lovely accommodations for guests visiting. Many of us support the hotel. It would behoove us all to remember taxes are lower in Florida thanks to tourists. They need somewhere nice to stay when here.
Also maybe now the City can find a way to lower our property taxes with the additional revenue this endeavor should generate. Do not look a gift horse in the mouth. This is a great addition and takes us back to our former days when a nice hotel was at the same location.
History is not bunk says
I’m relatively new to the area, and had much the same reaction as others: “What, a branded property in Flagler Beach? What’s next, Starbucks and McDonald’s?” BUT… it’s here now, let’s see what happens. Also, I did not know there had been a similar structure there, albeit closed for 30 years. Is this just history repeating?
george says
Kath, Who brings 2 cars to a hotel? Oh yeah, nobody! Many people, especially those staying at the beach, don’t bring a car at all and don’t rent one, preferring to Uber. The same is true of any responsible local resident, who would knowingly that parking might be an issue. Most people at the Salt Bar would be primarily hotel guests, also true of other restaurants, etc. you mention. Those that aren’t would likely be locals, who would know the parking situation. As far as the gift shop goes, I, for one, have never made a special trip for a gift shop. Maybe (and then only maybe) if you’re walking down the street and see it. People who go out drinking should definitely Uber, more to the point, there may end up being some stress on parking, but I could take apart every one of your assumptions.
Marlee says
What Kath said.
Flagler ecologist says
What type of architect designs these awful-looking places? This building doesn’t blend in with the Flagler Beach vibe or the environment of Flagler Beach. It could have been something unique and special to the Flagler Beach area. Instead, it’s just like all the other building going on in Flagler Beach and Flagler County, and that is, mediocre, unimaginative and ugly.
The Villa Beach Walker says
Finally, a place where friends and relatives can stay that ISN’T MY SPARE BEDROOM!
Jay Tomm says
Yeah I just LOVE seeing this huge building when I drive across the bridge instead of the ocean! What a dumb place to build.
TR says
Kath, a bit of an exaggeration on your numbers. There will not be 2 cars per room. What view does it block? When coming over the bridge you couldn’t see the beach at all, you do see the water though. But when driving your suppose to keep your eyes on the road. You want to see the beach, go stand on it. Why are you comparing what is going on in PC to Flagler?
Cara A Kavan says
It is so ugly. It’s the first thing you see when you are at the top of the bridge,not the beautiful,scenic ocean.
Laurel says
“Manoj Bhoola was driving east over the Flagler Beach bridge over four years ago when, at its apex, he saw the city’s urban core lounge [lunge?] its way to the ocean and thought: wouldn’t that be a good place for a Margaritaville hotel.”
More like wouldn’t that be a great place to screw up a beautiful view. We all drove over the bridge and loved the view. Now it’s an eyesore, and a huge disappointment. It’s who you know.
By the way, I thought that Flagler Beach was against “nationally recognized brands,’ and chains. You know, like the Hammock was until Bronx Pizza put up its NY urban, red brick building in a Florida maritime hammock.
People just love to go to “paradise” and change it as fast as they can.
Well, money always overrides quality of life. Enjoy your beach, residents. Fins up.
Mary Lumas says
Yippee, more traffic not enough parking. Ruined the view going over bridge. Enough said.
Dusty says
Let’s see how they do in winter
Pete says
Everybody had the same opportunity to purchase the property as the current owner did. Why do folks thing the world revolves around them? If you want a view, pay for it, otherwise go about your life.
Flagler Beach Resident says
I miss the view of the trash pile that used to be there (not!). You whiners need to get together and combine your wealth to buy the land so you can prevent others from building. This is your only option. Either that, or grow up and realize life changes.
Ryan Jones says
It’s a done deal now, must make Mr. Boolah and his fellow investors very happy. The article is right, it is going to change the character of this town. Perhaps we should rename to North Ormond Beach.
It’s interesting seeing all the comments supporting this because there was a hotel a long time ago, or because there is money to be made from the new crowd. Much like what is happening with the golf course, there are many in this city who would love to remake it in the image of literally every other seaside town in Florida, instead of appreciating what is unique about our lovely home. This project can’t be undone, we are well on our way to being just another suburb of Daytona Beach.
Hopefully this is a wake up call to those who care enough to be vocal about preserving the small town charm and capitalizing on our strengths: local small businesses, timeless, laid-back feel, and friendly neighbors who welcome visitors seeking a quieter sort of getaway. We never had a problem attracting visitors before; they came because this place was different. Now we will have a new type of visitor who wants a homogenous, name-brand experience. Hopefully we can find the balance.
Roy says
Everyone complaining that the hotel ruined the view coming over the bridge has forgotten how the bridge ruined everything when it replaced the draw bridge. It USED to be a quaint town with a quaint bridge.
The truth says
Love the townies and old grumpy people who think places won’t ever evolve. Nothing anywhere will stay the cane forever. That’s not how things work. But flagler isn’t exactly the melting spot of smart people.
Not so fast.... says
Jeff – “I still find it hard to believe people crying, moaning and complaining about it when there was a hotel there previously….”
That hotel was from the 1920s to the 70s…….
You can’t compare that era to present time. There were way less people, buildings, traffic, etc.
Laurel says
We went over the bridge and saw beauty. Bhoola went over the bridge and saw money.
This is what some call “evolving.” I call it cookie cutter devolving. Same old, same old. Fins up.
Rhonda Conway says
We were fortunate enough to find this place in our travels and stayed two nights the day it opened. I know it’s hard for many to accept change but walking the town as a “tourist” the hotel and the revitalization of the area is an asset!! We would have never came to town without this hotel being available for a stay. We frequented about 8 local establishments during our stay, I don’t know of any businesses that aren’t looking for more traffic.
Rhonda Conway says
When my husband and I travel, as we did to stay at this new hotel we only had one car. We saw two employees walking to work during our stay. The parking lot was 1/4 full during our two days. I think it’s rare for people to bring two cars to the hotel, especially if you fly in and rent a car.
Cars bring people and people bring money 💰 walking the town it can use a surge of sprucing up and I think this is a start.
larry krasner says
I will be boycotting Margaritaville because the owners, architects and lawyers snookered town officials into essentially adding a fourth floor in violation of zoning laws. Yes they did it legally and took advantage of city officials, but that was their intention all along. So I will not reward them with my patronage.
Besides, they offer nothing really different to what the city’s other businesses already offer. Just more shiny (and expensive).
Two wrongs do not make a right.
Ron Ferro says
Lower property taxes, that’s funny.
Bella says
Not So Fast – Is it possible that it’s more of a people or attitude problem than anything. People were not so spoiled in the 20s as World War I had recently ended. WWII started not all that long after WWI ended. Most alive today have never known any real hardships like those people knew. Suspect they were more grounded in reality and grateful for what they had. They certainly complained a lot less than the rest of us.
Jane Gentile-Youd says
The hotel is here to stay. I wish them and Flagler Beach the best. Do they allow pets?
Would love to stay a night or two myself with our fur babies…
Dave says
Oh how people forget that are not from here, the Flagler Hotel that opened in July 1925 and fronted Veterans Park. Torn down 1972.
Laurie Jo Jo Bergman says
Ashamed that the pier has not been rebuilt.
What can we do to help.
Is there a community group I can join to help?
I don’t want to criticize Margaritaville
because it’s too late.
Let’s join together and be positive!
Jennifer W says
What a big joke . Smh I feel for all the ma and pa restaurants adm stores that are now forced to expand where they can so they don’t customers . Stop making Palm Coast the next Orlando or Jacksonville. Our town use to be great a lot of major headaches coming for all of us people that have grown up here etc now moving away because this town has change in a big way . You guys need to start listening to your residents people that pay their taxes here . All these changes are traffic already a nightmare now adding all these new bussiness and houses . Before you know it we won’t have any trees left . Just my opinion 🤷
bellini says
It’s the worst architecture imaginable and it looks like cheap apartments. It might have been tolerable without the god-awful fourth floor, but nope, had to have it. Just garbage and it will get worse. Look at all the houses on A1A (I refuse to call it anything else) that have been standing for years and can’t be sold.