Merewether Surfhouse Sold for $27m

Newcastle’s Merewether Surfhouse is set for a major new chapter, with hoteliers Ben May and Rob Domjen acquiring the three-level beachfront venue and planning a substantial renovation.

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The 2277sq m property at 5 Henderson Parade, on Awabakal land, has reportedly changed hands for $27 million, although HTL Property did not disclose the sale price. May and Domjen acquired the venue from a consortium of investors including Mark Swadling and brothers-in-law Tony Green and John Tierney.

The pair will operate the venue through their new Pavilion Venue Co. group, with the Surfhouse expected to close in February before reopening later in the year as Merewether Pavilion.

The beachfront property sits directly opposite one of Newcastle’s two ocean baths, recognised as the largest in the southern hemisphere, placing it firmly within the daily life of the Merewether community.

“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.

The new owners plan to spend the first few months getting to know the existing venue and its community before making major changes. The redevelopment will also bring The Tropic, the restaurant from the pair’s Burleigh Pavilion venue, to Newcastle.

For Domjen, the emphasis is on creating a venue that feels specific to its location rather than importing a standard hospitality formula.

“We want to create venues that feel like they belong to their communities, rather than something that could be picked up and dropped anywhere,” he said.

The acquisition builds on May and Domjen’s growing portfolio of beachfront hospitality venues. May previously renovated the 1947 Barrenjoey Boatshed at Palm Beach, reopening it as The Joey in 2024, while the pair launched Terrigal Pavilion on the Central Coast last year. May is also behind Burleigh Pavilion and Mrs Sippy in Bali.

The Merewether Surfhouse itself has a significant place in Newcastle’s recent history. The current building was constructed in 2011 at a cost of $7 million after the original 1937 pavilion was destroyed in the 1989 Newcastle earthquake.

The venue reportedly generates more than $10 million in annual turnover, contributing to growing investor interest in established hospitality assets.

HTL Property agents Andrew Jolliffe and Dan Dragicevich managed the sale, receiving international expressions of interest from investors in markets including the US and Hong Kong.

Jolliffe said premium hospitality venues were “more desirable to investors today than ever”, with the combination of strong cash flow and landmark locations attracting a diverse pool of buyers.

“High cash flow landmark venues will always attract and maintain a premium,” he said.

For Domjen, however, the appeal extends beyond the financial performance of the asset.

“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,” he said.

The planned transformation of Merewether Surfhouse into Merewether Pavilion will give one of Newcastle’s best-known beachfront venues a new identity, while retaining its role as a place connected to the beach and the community around it.

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Newcastle’s Merewether Surfhouse is set for a major new chapter, with hoteliers Ben May and Rob Domjen acquiring ...