Hotel sale with $30 million price tag in Byron Bay

Only four blocks from the beach in Byron Bay, the Vali Hotel, acquired by Scott Didier, founder and CEO of ASX-listed Jons Lyng Group in 2021, has sold again.

It is the first hotel transaction above $20 million since 2019 and it was after a highly competitive campaign that held a price guide of $30 million.

Mr Didier had completed extensive renovations on the 52-room hotel creating a Palm Springs and California coastal aesthetic in the heart of the tourist town.

Gareth Closter, Senior Vice President at JLL Hotels & Hospitality Group said the sale aligned with recent regulatory changes made by Byron Shire Council for short-term rental accommodation. This involves a 60-day cap on residential properties, which is expected to redirect visitors towards hotels, motels, and traditional forms of accommodation.

Vali Hotel Byron Bay Room

“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.

Andrew Langsford, Senior Vice President at JLL Hotels & Hospitality Group said the sale attracted significant interest from local, domestic, and offshore investors.

“Byron Bay is an incredibly unique market with extremely strong demand fundamentals and limited large-scale hotel and accommodation offerings,” he 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.”

Byron Bay is seeing a flourish of upscale boutique hotels which include the newly opened Marvell Hotel and Swell Hotel, Byron Bay.

A new establishment, Basq House is planned to open later this year.

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