Fund manager set to buy leasehold and going concern of The Beach Hotel, Byron Bay

One of Australia’s most iconic beachfront hotels, just south of the Queensland border, is set for a new future with plans to buy the building and operation for a record price.

The Beach Hotel, Byron Bay

THE pub developed by John Cornell, better known as Strop to a generation of Paul Hogan Show viewers, has sold for an Australian record.

Fund manager Moelis Australia has entered into an exclusive agreement to pay just over $100 million for the freehold and going concern of The Beach Hotel in Byron Bay, just over the Queensland border.

Impact Investment Group pays $70m for Byron Bay’s Beach Hotel

JLL Hotels & Hospitality Group national director John Musca, who led the international sales campaign, said the pub held an “incredible place in people’s hearts and minds”.

“I’ve been in this game for 30 years and we’ve never a bigger single pub sale ever,” he said.

“And the reason for that is that it’s a huge business, on a phenomenal piece of real estate and it’s in Byron Bay which is one of the most aspirational places in the world to live.

“It’s extremely unique asset. There's never going to be a pub this big again and there’s never going to be another Byron Bay.”

Affectionately called “The Beachie” or “Strop’s Pub”, the hotel has 100m of beach frontage overlooking Byron’s Main Beach and includes resort-like accommodation, a large pub area with extensive beer gardens, restaurant, function spaces and a bottle shop.

The Beach Hotel at Byron Bay.

Cornell, who was also one of the main drivers behind World Series Cricket, built the pub in 1990. In 2007 he sold it Melbourne businessman Max Twigg for $44 million who extensively upgraded the asset.

Two years ago Melbourne-based private equity firm Impact Investments Group bought the freehold of the hotel for $70 million. Well known hospitality figures John and Lisa Van Haandel have managed the pub for the past 12 years.

The acquisition of the hotel is expected to wrap up before Christmas.

The Beach Hotel Byron Bay, NSW.

Moelis Australia Hotel Management chief executive Dan Brady said The Beach Hotel was an “iconic Australian establishment located on irreplaceable real estate”.

“The acquisition of both freehold and operating interests will enable the required capital investment to further enhance what has made the hotel iconic — that is, a great community gathering place with a fun, sociable, friendly and safe hospitality offering delivered by an engage and passionate team of local hospitality professionals,” he said.