Byron Bay’s Beach Hotel on the market
With property values soaring, Melbourne businessman Max Twigg is selling one of Australia’s best known pubs, the Byron Bay Beach hotel
The hotel is expected to fetch a price of between $75 million and $80 million.
The hotel was developed by John Cornell who people might remember co-wrote the global box office hit Crocodile Dundee with Paul Hogan back in 1986.
The film turned Hogan into an international star and grossed $360 million worldwide.
With the proceeds from the film, Cornell built the pub on Bay Road on the Byron Bay foreshore about $9 million. It soon became Byron Bay’s biggest and most lucrative spot.
Twigg bought the hotel from Cornell in mid-2007, paying $44 million, according to CoreLogic records.
The pub has been leased to Melbourne pub industry identity John van Haandel until mid-2017.
The lease has a further two, 10-year lease options and currently brings in annual income of around $4.2 million.
The Beach Hotel is located on a 4585-square-metre site.
It features multiple bars, a bistro with an alfresco dining area, a beer garden, a walk-in bottleshop, gaming room, 25 on-site hotel rooms and conference facilities.
There’s also a pool with heated spa.
Selling the pub for $80 million would deliver a yield of 5.3 per cent.
The sale comes at a time when demand for East Coat pubs is running hot. Property values are soaring, thanks to high profile investors moving in and listed vehicles such as HPI and ALE Property Group.
Daniel Dragicevich of CBRE Hotels and Tony Bargwanna and Jared Hodge of Ray White Hotels are managing the sale campaign.
“Sales of the Prince of Wales in St Kilda, Melbourne, and the Golden Sheaf Hotel in Double Bay, Sydney, saw competition generated across various purchaser profiles and we expect a similar market response for the irreplaceable Beach Hotel," Mr Dragicevich told the Australian Financial Review.
by Leon Gettler, 14th June 2016
