India, May 22 -- A new waterfront stay just opened in a quieter corner of the Hamptons.

The Penny Lane, an 18-room boutique hotel, is set in a residential neighborhood in Hampton Bays, along a canal just off Shinnecock Bay and about two miles from the Atlantic Ocean. It's a more relaxed pocket of the South Fork of Long Island, known for wide beaches, surfing, sport fishing, and easygoing waterfront restaurants.

The opening marks the Hamptons debut for Lark Hotels, a hospitality company with boutique properties across New England and California. (The company also manages the brand-new Cambridge Common House in Cambridge, Massachusetts.)

"We have been targeting South Hampton, New York, for some time now, looking for the right location an...