Merewether Surfhouse sells for $27m in latest pub trade deal
A consortium of hospitality investors, including Automic Group's Paul Williams and pharmaceuticals company founder Paul Duchen, has sold The Merewether Surfhouse in Newcastle for around $27 million to veteran publican Ben May, underscoring the continued strength of Australia's pub sector.
Also among the sellers is lawyer-turned-publican Tony Green, who previously operated the Royal Hotel in Paddington and The Clock in Surry Hills alongside brother-in-law John Tierney, another investor in the Newcastle venue.
For buyer May, whose company also operates the Burleigh Pavilion on the Gold Coast, the Terrigal Pavilion on the NSW Central Coast, and Bali beach club Mrs Sippy, the acquisition marks a return to his roots in the pub industry.
"My first job in hospitality was working for the vendors, Tony Green and John Tierney, at The Royal in Paddington and then The Greenwood in North Sydney. As such, I have enormous respect for what they have done over the years," May told The Australian Financial Review (AFR).
"We're very excited to dive into Newcastle and get to know the locals. It's similar to Burleigh in so many ways."
The three-level, beachside venue on Henderson Parade covers more than 2200 square metres and includes the Surfhouse Restaurant, the Beach Bar, a rooftop bar, event spaces and a beachfront promenade kiosk.
Duchen, also an investor in the venue according to company records, co-founded Arrow Pharmaceuticals, which merged with Sigma Pharmaceuticals in a $2.2 billion deal two decades ago.
HTL Property chief executive Andrew Jolliffe, who brokered the sale with colleague Dan Dragicevich, said Newcastle's strong economic base is driving hospitality demand.
"Newcastle is underpinned by universities, an active harbour, Hunter Valley mining, wineries and farming, as well as a burgeoning private sector," Jolliffe said. "As such, hospitality venues are well patronised and the equal of any other major Australian city.
"The Surfhouse is to Newcastle what The Steyne is to Manly, The Cottesloe is to Perth, or the Beach Hotel is to Byron."
Jolliffe said that hospitality properties are trading at a premium, reflecting the sector's resilience despite cost-of-living pressures on consumers.
Elsewhere in Newcastle, publican Glenn Piper owns The Beach Hotel, which he bought for about $40 million in 2022 — a record price for a pub in that market.
Jonathan Jackson, 1st September 2026
