Iconic beachfront Merewether Surfhouse listed for sale

Perched above the shoreline, the glass-fronted hospitality asset with a restaurant and bar, event spaces and a promenade kiosk and cafe is renowned for its sunset cocktails, uninterrupted ocean views and all-day dining.

The building offers 2277 square metres of floor area on a 1179-square-metre landholding at the southern end of the beach, next to the open-air Merewether Ocean Baths and benefiting from a steady stream of visitors taking the city’s Bathers Way coastal walk.

Each March, the Surfhouse also overlooks the action of Newcastle Surfest, the Southern Hemisphere’s largest surfing festival, in which more than 800 competitors from around the world contest nine events that attract thousands of spectators. 

“Impeccably constructed, and promoting uninterrupted views of the most stunning coastline, this multilevel hospitality asset is A-grade in every sense,” says selling agent Andrew Jolliffe, managing director of HTL Property. 

“This is one of those assets on Australia’s picturesque shoreline that commands attention on the rare occasion it becomes available to acquire.”

History and modern design

The Surfhouse replaced a 1937-built art deco surf club pavilion that was damaged in the 1989 earthquake and later declared unsafe in 1995. The earthquake – Australia’s deadliest – claimed 13 lives, injured more than 160 people and damaged about 50,000 buildings across Newcastle.

Completed in 2011, the iconic venue remains in the hands of the long-term ownership syndicate involved in its development.

The modern redevelopment reportedly cost between $5 million and $7 million and was financed by the Sailors’ Rock consortium, led by Newcastle businessman Keith Stronach, alongside a group of more than a dozen Merewether locals.

Stronach, the managing director of Stronach Property, secured the 50-year crown land lease and approvals in 2008 from Newcastle City Council.

Designed by Crone Architects, with interiors by CO-AP Architects, the award-winning building incorporated bespoke perforated aluminium ceiling panels and walls lined with 88,000 recycled wine corks to improve acoustics. The project earned recognition at the 2012 Australian Interior Design Awards, while builder Graph Building received a Master Builders Association excellence in building award.

Now the property is being offered to the market, with HTL Property’s Jolliffe and Dan Dragicevich handling the international expressions-of-interest campaign.

Industry reports have suggested the property could command about $25 million, although the selling agents did not confirm the estimate following requests for comment.

The listing marks the second time the property has hit the market, following a 2019 campaign through Colliers, when the property ultimately remained in the same hands.

Multi-level venue offerings

The Surfhouse opens daily, with takeaway coffee served from the ground-floor kiosk alongside the Beach Bar cafe, which offers breakfast and lunch before transforming into a taco bar on Friday and Saturday afternoons.

The top-floor Surfhouse Restaurant serves modern Australian cuisine showcasing Hunter Valley produce and Australian seafood, alongside a rooftop bar offering bar food and pizza.

The second floor is used as a dedicated event space, hosting weddings and other celebrations catering from 40 to up to 350 guests. Each space has private balconies, a dance floor and AV equipment.

The venue also has public showers and amenities for beachgoers.

According to the selling agents, the property has historically generated annual cash flows in excess of $10 million and has been operated by the same team of pub veterans since opening.

The group acquired the original ground lease for $12 million in 2018 from Sailors’ Rock.

The venue offers “very favourable lease terms”, with up to 35 years’ tenure and peppercorn rent, agents say.

The listing is tipped to attract investors who missed out on Newcastle’s Merewether Beach Hotel, set behind the surfhouse on Frederick Street. The century-old corner pub was acquired by hotelier Glenn Piper in 2022 in a $40 million deal handled by HTL Property.

“Having sold Merewether’s outstanding Beaches Hotel, we fondly recall the market interest generated in irreplaceable Newcastle hospitality assets and expect significant interest in this rare trading opportunity,” says Dragicevich, national director at HTL Property.

Jolliffe says Surfhouse joins landmark beachfront venues such as Manly’s Hotel Steyne and Byron Bay’s Beach Hotel among Australia’s most recognisable coastal hospitality assets.

“Newcastle’s Surfhouse enjoys its place in this esteemed cohort,” he says.

Newcastle is the second-largest city in New South Wales and sits about two hours’ drive north of Sydney, while the renowned Hunter Valley wine region is less than an hour inland.

Newcastle Airport recently opened a new international terminal, expanded its domestic and overseas routes, and was recognised at the 2026 Australian Aviation Awards for its terminal design, sustainability initiatives and contribution to jobs and economic growth across the Hunter region.

Merewether is widely regarded as Newcastle’s premier beach suburb, combining one of Australia’s best-known surf beaches with a thriving hospitality scene. Acclaimed venues including Peregrin, Roundhouse, Light Years, Humbug and Lock’s Paddock have helped cement the city as one of the nation’s leading regional dining destinations.

Newcastle hospitality momentum

Hospitality investment continues to flow into Newcastle, with MA Financial’s Redcape Hotel Group’s acquisition of Iris Capital’s Hunter Region hospitality portfolio in a transaction worth close to $500 million – the largest freehold going-concern hotel transaction in Australian history.

Newcastle’s night-time economy continues to strengthen, generating $2.3 billion in turnover during 2025 and supporting 13,600 jobs across more than 1000 businesses, according to the Council of Capital City Lord Mayors’ latest report. 

The property is for sale via an international expressions-of-interest campaign closing at 4pm on August 20.