Merivale might be an Australian hospitality heavyweight, but its focus is as Sydney-centric as Utzon's Opera House.

Until now, that is. It was always going to take something special to make Justin Hemmes bite outside his hometown, and it turns out that something is The Quarterdeck in Narooma.

Merivale has snapped up the property on the NSW south coast for an undisclosed sum. What it lacks in polish it makes up for in rambling charm and an enviable waterfront location.

A local institution, the onetime oyster grower's shed has operated as a Tiki bar for the past two decades. When the hospitality giant gets the keys in coming months, the plan is to trade it in its current form "for the foreseeable future".

The location of Merivale's first play outside of Sydney has long been argued over, with many picking Melbourne as its first move. But Hemmes has always privately expressed he favours locations that he has a strong connection with.

"Narooma has become my second home and the backdrop to so many of my happiest memories with my family," he says.

"I think it is one of the most beautiful spots in the world, with a unique landscape, crystal clear waters and an amazing community of people who call it home.

"It has been an absolute privilege to spend so much time here over the past six years and I'm excited to now join the local business community."

The boom in domestic tourism over the past 12 months also helped the decision. "One of the silver linings to come out of the last year is a heightened appreciation for our own backyard, an excitement to explore our spectacular country and its coastline," Hemmes says.