The owners of Byron’s iconic Beach Hotel have refused an offer of $58 million and are hoping for further offers over $75 million, according to the sales agents.
The property is being marketed by Matt and Lainie Towner of RE/MAX Coastal Real Estate..
Matt Towner told Echonetdaily that the offer of $58 million had been presented to owner Max Twigg and his associates, but they were only interested in offers over $75 million.
The hotel was bought for $65 million in 2007 by Mr Twigg, a Melbourne businessman who made his fortune through a career in waste management.
The pub brings in an annual income of $4.2 million, and is leased to Melbourne entrepreneur John van Haandel until mid-2017 with options to extend on 10-year leases.
The beachfront hotel was developed by Australian film producer and actor, John Cornell, most noted for his work in the Crocodile Dundeemovies.
Mr Cornell built the hotel for $9 million in 1990 and owned it until its record sale in 2007.
Mr Towner said it was important to note that the Beach Hotel was being sold on the condition that Mr van Haandel would continue to manage the property.
The hotel was offered for sale last year in June with a price tag of $75 million-plus, but failed to sell.
Mr Towner said RE/MAX Coastal had more than one party interested in negotiating to buy the property.
‘RE/MAX Coastal only deal with qualified buyers which must be confirmed and confidentiality agreements signed before any facts and figures are discussed about the property,’ he said.
‘RE/MAX Coastal have a databased of over 30,000 property investors, many of whom are very high end investors.’
The company recently sold singer Pete Murray’s beach house.
I hope with all my hear that this iconic establishment shall never be demolished.
If they want $75 million for it with only a $4.2 mil income (is that profit?), it will take new owners over 17 years for them to get money back.
Present owners have had it for 10 years right? So they have only made $40.2 mil back from $65 mill investment.
If my maths are correct that means they are asking way too much for this business.
Have you been there lately? Looking a bit shabby with broken ceiling windows and the ladies room a bit rundown. Maybe it’s been done up, cause I don’t go there anymore.
But as a long time local I think these sellers and others are all asking way too much for any business or property in this area. I reckon it is all tipping way over the border of ridiculous, don’t you?