Byron’s Beach Hotel to be sold to Moelis Australia in $100 million deal

An astonishing price has been agreed for the famous Beach Hotel in Byron Bay, which is being sold for the second time in two years.

The Beach Hotel Byron Bay, NSW has sold for the second time in two years.

The famous Beach Hotel in Byron Bay is on the verge of being sold for the second time in two years.

Moelis Australia announced this morning it had signed an exclusive agreement to buy the Beach Hotel including the real estate from Impact Investment Group for $100 million.

The sale price includes the business, which is separately owned by pub industry identity John van Haandel. If the sale is completed, it would be the first time that the business and real estate come under the same ownership since 2007.

The deal, to be finalised in the coming weeks, remains subject to exchange of purchase and sale agreements.

In an ASX statement Moelis Australia Hotel Management CEO Dan Brady said the hotel is an “iconic Australian establishment”.

The Beach Hotel Byron Bay, NSW, has sold for the second time in two years.

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“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 engaged and passionate team of local hospitality veterans,” he said.

The hotel, situated on a 4585sq m block at 1 Bay St, was developed by Paul Hogan’s business partner, John Cornell more than 30 years ago, mainly from the proceeds of their film Crocodile Dundee. The hotel features a large pub with beer gardens, restaurant, function spaces and bottle shop.

Impact bought the freehold to the property for $70 million off keen race car driver Max Twigg in 2017. The business was retained by Mr van Haandel who has eight years to run on his current lease with a further 10-year option.

The Beach Hotel Byron Bay, NSW, has sold for the second time in two years.

The property was marketed by JLL’s John Musca, Tom Gibson and Tom Gleeson.

Moelis, which manages the listed Redcape Hotel Group and a single-asset fund that owns the Grand Hotel in Rockdale, NSW, said it intends to establish a separate fund for the Beach hotel assets. It currently has $4.7 billion worth of assets under management across its funds.

The company said if the sale proceeds the hotel will be managed by Moelis Australia Hotel Management and the majority of management and staff will be retained.