Merivale buys the Newport Arms Hotel

Hospitality giant Merivale has snapped up the iconic Newport Arms Hotel.

"We did the deal at 10.30pm last night [Tuesday]," Justin Hemmes told goodfood.com.au.

While Hemmes refused to comment on price, sources close to negotiations believe the final figure isn't far from the $50 million asking price.

Hemmes has shown his mettle, continuing to build the Merivale empire just weeks after the passing of family patriarch John Hemmes.

"He would've loved the place. It's beautiful, looking over the water with all those trees." Justin Hemmes says

"I enjoyed the Coogee Pavilion project so much I wanted to do another one that's community based. It has to be busy seven days a week, and the only way to do that is to engage the locals."

Merivale takes possession in about 10 weeks and will operate the hotel before making any changes so as to "fully understand the market."

But the northern beaches can expect the Merivale touch down the track.

goodfood.com.au reported last week that Merivale was circling the pub. Hemmes says he had visited it only once, over 20 years ago, before returning recently. "I really fell in love with the trees," he says.