Gurney's Inn, long an iconic resort on Long Island's eastern tip at Montauk, has been purchased by two New York City-based developers who intend to revamp the property and shed its timeshare model in five years.

Formerly run by the Monte family, the resort was bought in June by developers George Filopoulos of Metrovest Equities and Lloyd Goldman of BLDG Management for an undisclosed sum.

As part of a plan approved by the timeshare owners, the new owners will buy out timeshare holders' leases and shares within the next five years. The timeshare owners were given three options for selling their shares, according to documents they received.

About a third of Gurney's 109 rooms are active timeshares, said Pat Boffa, president of Gurney's Timeshare Owners Inc., a nonprofit set up to provide updates on the property to timeshare holders.

"It couldn't continue as a timeshare forever, we all knew it," said Boffa, who is a New Jersey resident. "At the rate the maintenance was going up and the assessments that were pending, it just didn't work anymore."

Over the years, Gurney's had been plagued by a bankruptcy and spats with timeshare owners over refinancing options. Last year, the resort was featured on the Travel Channel's "Hotel Impossible," a reality program that offers makeovers at struggling hotels.

Filopoulos, who is known for turning around distressed real estate properties, said in an email that he intends to improve Gurney's through a multiyear capital plan focusing on accommodations and food and beverage, and he called Gurney's a "one-of-a-kind property."

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Under Filopoulos, Gurney's has already opened a new beach club with local DJs and a new menu.

Gurney's took root in 1926 when Maude Gurney founded a 20-room inn to provide a getaway for New Yorkers. In 1956 the property was purchased by Nick Monte, who expanded and revamped the resort.