Hotel Tycoon Forges Ahead With Byron Bay Transformation
Justin Hemmes, the prominent Sydney hospitality magnate, has resumed construction work on his ambitious expansion of the former Cheeky Monkey's nightclub in Byron Bay, despite ongoing scrutiny from local authorities. The 53-year-old billionaire recently faced enforcement action from Byron Shire Council for conducting unauthorised works at the site while awaiting secondary development approval.
Exclusive photographs reveal that tradespeople have returned to the property, with work vehicles visible on the premises that Hemmes acquired for $13 million in 2021. However, these latest construction activities are understood to be legally permitted under an initial development approval granted in 2023, distinguishing them from the previously penalised works.
Council Clash and Development Details
The situation reached a head when council officials issued Hemmes with a fine for proceeding with certain aspects of the project without obtaining the necessary second development approval. Shannon Burt, Byron Bay Council's director of sustainable environment and economy, confirmed that "some works undertaken on the site have been the subject of recent enforcement investigation and action."
Current development application documents reference amendments concerning the "formalisation of works undertaken without consent" and outline plans for alterations and additions to existing restaurant and commercial premises. The proposal includes establishing two restaurants and removing seven trees—six Coast Banksias and one Bangalow Palm—from the site.
A privacy fence surrounding the construction area bears a promising message for local residents: "We're cooking up something great. See you soon, Byron." While the precise nature of the current works remains unclear, Daily Mail understands they fall within the scope of the 2023 approval, with Hemmes still awaiting permission for subsequent construction phases.
Grand Vision Meets Community Concerns
Hemmes envisions transforming the former backpacker nightclub into the largest hospitality venue ever to open in Byron Bay. His expansion strategy gained significant momentum in 2023 when he invested $11.9 million to acquire neighbouring properties including Red Ginger, Bell & Ford, and Johnsons storefronts.
Merivale, Hemmes' hospitality group, now plans to convert the 1,700 square metre retail lot into a vibrant dining and entertainment hub. The development application indicates an estimated construction cost of $1.49 million and proposes operating hours from 10am until 2am daily, accommodating up to 545 patrons.
The venue is expected to feature popular Sydney establishments Totti's and Jimmy's Falafel, with Merivale asserting the development will "contribute to the character and vibrancy of the town centre."
However, the project faces significant opposition from Byron Bay Public School, located less than 70 metres from the proposed venue. Parents and school representatives have voiced strong concerns about the development's scale and potential impact on young students.
"We've been completely overlooked," stated Byron Bay Public P&C president Laura Cima. "We obviously have concerns about the size and scale of this development and the potential safety risks for children at a school less than 100 metres from the venue."
Parent Rachael Calvert expressed her surprise at the development, telling The Sydney Morning Herald: "I'm gobsmacked. It's the first time I've ever been vocal about a development application."
Merivale has responded to these concerns, claiming they have kept the school "fully informed" about refurbishment plans. A company spokesperson emphasised that "the result will be two beautiful, family-friendly restaurants that bear no resemblance to the former infamous Cheeky Monkey's nightclub."
Despite these assurances, parents remain worried about the venue's proposed all-day dining and drinking operations, contrasting it with the former nightclub that primarily operated during evening hours after schoolchildren had returned home.
The original Cheeky Monkey's nightclub closed its doors in March 2020 due to COVID-19 restrictions, marking the end of an era for the popular backpacker destination. Hemmes' redevelopment plans represent a significant shift in the property's purpose and scale, potentially reshaping Byron Bay's hospitality landscape while testing the balance between commercial development and community interests.
