Generations of Hospitality: The Rye Hotel Under the Houghtons 

Nestled on the beautiful foreshore of the Mornington Peninsula, the Rye Hotel stands as a testament to the enduring legacy of the Houghton family in the hotel industry. Peter Houghton, a fourth-generation hotelier, shares his remarkable journey and the rich history that has shaped his approach to managing the iconic Rye Hotel, before it was sold in 2023 to a hospitality giant. 

Peter’s early days were steeped in the vibrant atmosphere of pub life, starting as an 8-year-old beer garden cleaner at the Koonya Hotel in Sorrento. “Although the Rye Hotel was my first home, my memories truly begin at the Portsea Hotel in the mid-50s,” he recalls. The sense of community and camaraderie during those formative years left a lasting impression on him. “The population of the town was much smaller, and in doing tasks about the venue usually during summer, somebody would invariably shout you a creaming soda or a bag of Colvin chips! I remember that the Coca Cola rep at that time was Bobby Skilton, the ex-South Melbourne F.C Captain. At 10 shillings per week for 20-hours-a-week cleaning the beer garden, it was marvellous as an 8-year-old,” said Peter. 

The Houghton family’s deep roots in the hotel industry significantly influenced Peter’s approach to managing the Rye Hotel. “Each generation had at least one or two members who ventured into running hotels,” Peter explains. “I think it was the connection to the community that determined my approach to initially assisting my parents in the running of the Rye Hotel.” 

The Portsea Hotel Night Cupboard in the 1950’s

The Houghton family’s involvement in the Portsea and Koonya Hotels provided Peter with invaluable experiences that shaped his approach to the Rye Hotel. “When my father returned from the Second World War, both he and my mother joined my grandfather in running the Portsea Hotel,” Peter shares. “In 1958, my parents took up the business of the Koonya Hotel. It had a strong community spirit, and when I joined my parents in the early 70s, I thought of it more as a country pub.” 

Peter’s vision for the Rye Hotel has always included a focus on sustainability and leveraging its unique features. In 2017, he installed 329 solar panels and electric vehicle charging stations. “The Rye Hotel had a massive footprint over three distinct detached buildings,” Peter explains. “The buildings also faced north, so there was a great opportunity to take advantage of the natural sunlight and go ahead with the solar installation. At that time, the local municipality was working with the Sustainable Melbourne Fund to assist with the cost of installation. It was anticipated that it would take 9 years to ensure the benefit of repayment. The Rye Hotel was one of the first businesses in this area to embrace this solar experience. As there were few regional EV charging units, I got a little carried away and installed 3, mainly as a marketing ploy to increase both casual business and accommodation,” said Peter. Whilst the panels could never be the panacea to getting off the grid, Peter mentioned an estimated 10-15% reduction in the overall electricity account, and as he was regularly informed, the saving of thousands of trees. 

Peter Houghtonas featured in an article by Herald Sun. Picture: Josie Hayden

The beautiful waterfront views of the Rye Hotel have also played a crucial role in enhancing the guest experience. “My mission was to take advantage of the vista,” Peter says. “The main building’s façade development was largely floor-to-ceiling glazed doors opening onto a balcony overlooking the bay.” 

The period of enforced closure during COVID-19 was utilised by Peter to complete the final stage of the hotel’s major refurbishment. “The redevelopment of the ground storey and Upper Deck of the Main Sail Deck had only just begun when we were faced with the pandemic,” he recalls. “Given the protocols we needed to adopt, the task to completion was our biggest challenge. The closure did have its benefits to a degree as renovation and construction could proceed, but it was extremely limited.” 

As a Peninsula local, Peter’s connection with the local community has always influenced his business decisions. “Most of the talks I now give to groups revolve around the theory that ‘The Pub is the Heart of Community’,” he explains. “My family have always encouraged interaction with local sporting, business, and social groups. It is not difficult to remain connected when somebody wants something!” 

Peter’s career journey is marked by significant milestones, including the purchase and redevelopment of the Rye Hotel and associated properties. “Apart from the guaranteed summer employment whilst a student at home, I learnt a lot both as a barman and with the Commodore Group,” he shares. Other milestones included the purchase of the Pine Grove Hotel in Upper Beaconsfield, rebuilding it after the Ash Wednesday bushfires, and as Peter says, the greatest being the purchase and redevelopment of the Rye Hotel. 

For aspiring hoteliers, Peter offers simple yet profound advice: “Appreciate the customer; engage with the good ones; and attempt to exceed their expectations. In the hospitality industry, Customers Are Really Everything (CARE). Without them, there is no revenue, no business.” 

The Rye Hotel’s historical significance is something Peter is keen to preserve while modernising its facilities. ” The present main structure of the hotel was built in 1927, but prior to that there was a hotel called the “Gracefield”. Rye was basically founded on the extraction of Limestone, a small element of agriculture, fishing, and the cutting and carting of mainly tea-tree to fire the furnaces in the city. The large photographic records of these activities were always of interest. In addition, the personal interaction with two local historical societies keeps one abreast of information when people enquire. I have always attempted to respect the original Federation design of the original building in undertaking development. So, whilst in a series of renovations all areas have gone to more “open plan”, this contemporary design takes advantage of the light, the outlook, and functionality, whilst retaining the original lines of the structure,” said Peter. 

In 2023, Peter and his family sold the Rye Hotel to a large hospitality group. Peter Houghton’s journey with the Rye Hotel is a compelling story of tradition, innovation, and community. His commitment to sustainability, leveraging unique features, and staying connected with the local community has cemented the Rye Hotel’s place as an iconic foreshore hotel.