Race for Byron’s Beach Hotel Almost Over

After a highly anticipated and competitive Expressions of Interest process, Moelis Australia has secured a short exclusivity agreement for the acquisition of the Beach Hotel in Byron Bay.

JLL Hotels & Hospitality Group is managing the process which drew more than 100 enquiries from around the globe and numerous bids, resulting in the shortlisting of four parties with bids exceeding $100 million.

The prospective sale is for the combined freehold and leasehold of the hotel. The freehold last changed hands in 2017 with funds manager Impact Investment Group purchasing the buildings for $70 million. The operating business, or leasehold, has been owned and managed by Melbourne’s famous van Haandel family since 2007.

JLL National Director John Musca said the broad profile of bidders and robust committed offers was testimony to the extraordinary place Byron Bay and the Beach Hotel holds in the national psyche and hospitality space.

“This was the first time in decades that a buyer had the chance to secure both the hotel business, and this iconic property in a stunning location,” Mr Musca said.

Both Impact Investment Group and the van Haandel family have worked to find the right custodian for the asset, considering both the community-oriented sensitivities and the best commercial outcome. This extended to important terms of the sale which include a long-term moratorium on poker machines at the venue, a level of staff retention and selling to a reputable long-term industry employer. The buyers are also expected to undertake significant initial investment and improvements in the property.

Impact Investment Group Head of Real Estate Funds Management, Darren Brusnahan, said: “Understanding a buyer’s vision for the site and their community empathies are very important to us. The leading buyer’s acquisition proposal includes consideration of what locals and the 14,000 daily visitors to Byron Bay really want from the hotel.”

Moelis ran extensive independent focus group research with Byron residents and visitors. Clear feedback validated Moelis’ vision for the pub, which centres around aligning the Beach Hotel to the local community values of openness, fun and artistic expression, whilst preserving the unique Byron Bay vibe and classic Australian pub culture.

The van Haandel family has operated the hotel since 2007, and as long time Byron Bay residents John and Lisa are keen to pass the legacy onto a worthy and capitalised new owner. “It’s really important to Lisa and I that the incoming party respects the township’s needs and invests in the property and the many exciting new business initiatives and ideas that are available,” said John van Haandel.

Daughter Elke van Haandel, who manages the complex, confirmed “we were impressed by the way all bidders addressed the role of community in the future of the Beachie and are very excited about seeing its evolution from here.”

Mr Musca said managing the enormously successful process had been a privilege but it was not over, and now that Moelis has been selected it was in their hands to expedite the acquisition. “There are a number of really disappointed underbidders at the ready to step in should they falter for any reason.”

JLL Hotels & Hospitality Group, 18^th November 2019