Investment manager Moelis Australia has entered into a $100 million agreement with Melbourne-based Impact Investment Group to secure the Beach Hotel in Byron Bay.
Moelis announced on Monday the agreement covers the purchase of both the real estate and operating business of the popular hotel, which spans a 4585sq m block on 1 Bay Street.
The hotel was developed by Paul Hogan’s business partner, and Crocodile Dundee producer John "Strop" Cornell, in the early 1990s.
IIG purchased the hotel for $70 million in 2017, with the hotel previously operated by Byron residents the van Haandel family.
The Beach Hotel will be managed by Moelis Australia Hotel Management.
“The acquisition of both the real estate and operating business will reunite the common ownership of the real estate and operating business for the first time since 2007,” Moelis Australia Hotel Management CEO Dan Brady said.
Moelis Australia, which manages ASX-listed Redcape Hotel Group, will establish a single asset investment fund for investors.
Brady says Moelis plan to keep the majority of the hotel’s existing management and venue staff.
“The acquisition of both freehold and operating interests will enable the required capital investment to further enhance what has made the hotel iconic,” Brady said.
JLL Hotels were appointed to sell the Byron Bay asset. The purchase remains subject to finalisation of contracts.