Justin Hemmes' Merivale Group just bought one of Sydney's most famous pubs, the Newport Arms

Justin Hemmes has bought the Newport Arms

The Merivale Group, owners of the Sydney CDB hotels the Ivy and Establishment, has bought the landmark northern beaches pub, the Newport Arms Hotel.

Merivale CEO Justin Hemmes described the 11,500m2 waterside Newport Arms, with the biggest beer garden in the southern hemisphere, as one of Australia’s most iconic pubs.

“It is a spectacular property in a beautiful location and holds a very special place in the hearts of locals. Assets as unique as the Newport Arms deserve to be celebrated,” he said.

News of the deal, which is rumoured to be worth up to $50 million, comes just a fortnight after the family-owned hospitality group lost its founding patriarch, John Hemmes.

The Hemmes family company now controls more than 50 bars, hotels and restaurants across Sydney, stretching from Papi Chulo at Manly Wharf, to Coogee Pavilion in the eastern suburbs, which launched less than 12 months ago. The value of the business is believed to exceed $1 billion.

Merivale will take possession of the Newport Arms in May 2015. Further details and plans for the site will be announced in due course.

The family-owned Bayfield Hotel Group officially put the waterfront pub, which they bought in 1991, on the market last month, having sold the Newport Mirage to Chinese buyers last year, as well as offloaded the Caringbah and Belrose hotels in the last few years.

Their other property, the Dee Why hotel, has been on the market for some time. The company still runs a major bottleshop, Bayfields, in Dee Why.

NOW WATCH: Executive Life videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.