Grab the Top Pub for $80 Million
The Byron Bay Beach Hotel is for sale with market expectations of between $75 million and $80 million.
Melbourne businessman Max Twigg bought the hotel in mid-2007 from its developer, John Cornell, who co-wrote (with Paul Hogan) and produced the global box office hit, Crocodile Dundee, in 1986.
Cornell bought the pub from legendary local publicans Ron and Shirley Redman. Ron was often heard to say, “This is my circus and I’m the ringmaster. If you want to run this circus your way, slot me $1.5 mil and you can be the ringmaster.”
Forty-odd years later and the Top Pub’s asking price has shot through the stratosphere.
Cornell knocked down Ron and Shirley’s place and built the new hotel for about $9 million and it quickly became the coastal town’s largest and most lucrative entertainment venue.
The hotel is leased to Melbourne pub industry identity John van Haandel until mid-2017 with a further two, 10-year lease options and currently brings in an annual income of around $4.2 million. Should it sell for $80 million, the yield would be 5.3 per cent.
East Coast pubs in demand
At the centre of this lifestyle is the Beach Hotel – or “Top Pub” as the locals call it. Standing on a 4585-square-metre site, the Beach Hotel includes 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 as well as a pool with heated spa.
It comes amid heightened demand for East Coast pubs, with the sector enjoying a post-GFC revival and a surge in values, backed by the success of listed vehicles such as HPI and ALE Property Group and interest from high-prof
It comes amid heightened demand for East Coast pubs, with the sector enjoying a post-GFC revival and a surge in values, backed by the success of listed vehicles such as HPI and ALE Property Group and interest from high-profile investors.
In June, a Sydney property syndicate that included BRW rich lister and Sydney Roosters chairman Nick Politis swooped on the Treetops Tavern in Burleigh Waters, Queensland in a $20 million deal while the Melbas Tavern in Surfers Paradise was picked up recently by Leda Holdings owner Bob El for $12.5 million.