Hotel & HospitalityVanessa CrollWed 24 Jun 26
Raes Opens Bonobo Hotel as Byron’s Main Strip Moves Upmarket
One of Byron Bay’s original backpacker addresses has checked back in at the other end of the tariff.
At 116 Jonson Street, The Bonobo by Raes has opened in place of Backpackers Holiday Village with a 74-key hotel-and-residences precinct in the centre of town.
For almost four decades, the site housed the Walker family’s 200-bed hostel, reportedly Australia’s first purpose-built backpackers’ accommodation.
Byron’s bunk-bed era has since made way for a three-level Richards & Spence-designed project with hotel rooms, residences, rooftop swimming, dining, wellness, retail and private plunge pools.
The Brisbane practice is known for The Calile Hotel, whose architecture helped make James Street a national design reference point.
For Raes, the opening moves the Catalano family’s Wategos Beach hospitality brand into central Byron and caps a four-year repositioning of the Jonson Street holding.
Podia acquired the 4287sq m site in 2021 for a reported $18.55 million after the Walker family, which established the hostel in 1983, brought it to market.
Formerly known as The Barbotine, the Podia and Centennial Property Group scheme was later rebadged The Bonobo by Raes, pairing the hotel-apartment model with the Wategos brand’s operating platform.
The earlier model centred on 41 two, three and four-bedroom hotel-apartments for owners to use as part-time coastal retreats and short-term rentals when not in residence.
Under the Raes brand, the project now operates as 74 hotel rooms and residences across one, two and three-bedroom layouts. Some can connect into four-bedroom stays. Others have private outdoor areas and plunge pools.
Its arrival lands as Jonson Street’s old backpacker and nightlife stock is being reshaped by hospitality capital.
Across the street, Hemmes Property has approval for Merivale venues Totti’s and Jimmy’s Falafel at 111-115 Jonson Street, including the former Cheeky Monkey’s site.
Bonobo’s opening lands as Byron tries to better balance visitor demand with formal accommodation supply.
The Byron Shire Council’s visitor economy plan says the shire drew 1.79 million visitors and $1.11 billion in spending in 2024, while listing limited commercial accommodation as a weakness and branded accommodation as an opportunity.
At the same time, most non-hosted short-term rentals in the shire are capped at 60 days a year under NSW Planning rules outside mapped precincts in Byron Bay and Brunswick Heads.
Inside The Bonobo, the shift from old Byron to new Byron becomes harder to miss.
Studio Manifold handled interiors, in collaboration with Birdy Catalano, with custom Jardan furniture, MCM House outdoor pieces, works by Doris Bush with 8 Hele Gallery and prints by Traianos Pakioufakis. Residences include Breville-equipped kitchens and laundries.
Rooms carry Le Labo Santal 33 amenities, while in-room bars include The Bonobo Lager and Brookie’s gin cocktails.
Food and beverage is led by Jason Saxby, executive chef of the two-hatted Raes Dining Room, and Bonobo head chef Callum Gray.
The 110-seat Lobby Lounge will run from morning coffee to late-night drinks, with in-room and rooftop pool service.
Menu items include the Bonobo Club Sanga, pork cotoletta and zeppole.
Raes group general manager Marty McCaig said the opening was “a significant new chapter for Raes”.
“The Bonobo has been designed as a place where people can stay, meet, dine and unwind, whether they are visiting Byron for a weekend, an extended stay, or simply dropping in for a drink,” McCaig said.
Reset will open its first Byron wellness studio at The Bonobo in July, extending from Double Bay, with cedar saunas, ice baths, eucalyptus steam, magnesium baths, vitamin C-infused showers, LED light therapy and treatment rooms.
Byron-born menswear brand Atlas Homme will also open in July with labels including Tom Ford, Zegna, CAZAL and House of Creed.
Rooms start from $355 a night.
