PubsHarrison CaithnessMon 07 Sep 26
Newcastle’s Merewether Surfhouse Changes Hands for $27m
The Merewether Surfhouse, a three-level beachfront hospitality asset, has been acquired by hoteliers Ben May and Rob Domjen as part of their shared portfolio.
May and Domjen picked up the 2277sq m asset from a consortium of investors that included Mark Swadling and brothers-in-law Tony Green and John Tierney.
While HTL Property has not disclosed the sale price, media speculation has put it at $27 million.
The surfhouse at 5 Henderson Parade on Awabakal land fronts one of Newcastle’s two ocean baths—the largest in the southern hemisphere.
The acquisition is not May or Domjen’s first foray into beachfront hospitality, but is their first Newcastle property.
May renovated the 1947-built Barrenjoey Boatshed at Sydney’s Palm Beach, christening it The Joey, for $7 million in 2024.
He opened the Terrigal Pavilion on the Central Coast with Domjen—also partner to The Joey—last year.
Domjen and May have partnered at the Merewether Surfhouse under their new Pavilion Venue Co. group.
The surfhouse is due to close in February to undergo major renovations and will reopen later in the year as Merewether Pavilion.
“We’re very excited to dive into Newcastle and get to know the locals. It’s similar to Burleigh in so many ways,” May said.
Burleigh Pavilion's restaurant The Tropic will open in the Merewether Pavilion.
May, who also owns the Mrs Sippy beach club in Bali, picked up the Burleigh Pavilion on the Gold Coast with investor-developer Robert Magid a decade ago.
The Merewether Surfhouse was rebuilt in 2011 for $7 million after the 1989 Newcastle earthquake destroyed the original 1937-built pavilion.
May said he and Domjen would spend a few months “getting to know the venue” before making major changes.
“We want to create venues that feel like they belong to their communities, rather than something that could be picked up and dropped anywhere,” Domjen said.
HTL Property’s Andrew Jolliffe and Dan Dragicevich handled the sale, fielding international expressions of interest from late July into August, including from the US and Hong Kong.
Jolliffe and Dragicevich also handled the $40 million sale of The Beach Hotel at Merewether to Meridian Australia chief executive Glenn Piper in 2022.
Jolliffe said premium hospitality venues were “more desirable to investors today than ever”.
He described the buyer pool as “unique” owing to a mix of new market entrants and “well-regarded actors”.
The Merewether Surfhouse turned over more than $10 million a year.
“High cash flow landmark venues will always attract and maintain a premium,” Jolliffe said.
“We’ve never set out with a plan to build venues up and down the coast. We’re simply drawn to great sites on the water, in communities where the beach is part of everyday life,” Domjen said.
