Johns Lyng Group chief executive Scott Didier has sold his 52-key hotel in Byron Bay in a deal just shy of his $30-million ambitions.
It’s the first hotel transaction above $20 million in the tourism hotspot since 2019.
The transaction of the 52-key Palm Springs style hotel was negotiated by Andrew Langsford, Gareth Closter and Taylor O’Brien of JLL’s hospitality group.
Didier acquired Vali in 2021 and undertook significant renovations and uplift of the property.
JLL senior vice-president of hotels and hospitality Andrew Langsford said the campaign had attracted significant interest domestically and offshore.
“Byron Bay is an incredibly unique market with extremely strong demand fundamentals and limited large-scale hotel and accommodation offerings,” Langsford said.
“The majority of hotel investors and operators are interested in having a presence in the region, which was reflected in the Vali Byron Bay sale process.”
The Byron council recently announced it would clamp down on Airbnb and short-term rental accommodations in a bid to unlock rental supply.
From September the council will impose a 60-day cap on residential properties, which JLL’s Gareth Closter said would have a positive impact for the area’s hotels and traditional accommodation assets.
“This huge regulatory change will provide an exciting opportunity for improved trading performance for existing operators. Especially in an accommodation market like Byron Bay which has such a strong presence of ‘holiday rental’ operators such as Airbnb,” he said.
Byron Shire Council issued its first fine for unauthorised holiday letting last month; $12,000 to a Suffolk Park property owner for exceeding the 180-day short-term rental limit.
An industry source told The Urban Developer that values had come off by up to 27 per cent since the peak of December 2021.
Vali Byron Bay is one of the largest hotels in the town centre, with more hotel developments in the wings.