Hotel Diplomat in Potts Point (Photo Credit: Travel Weekly)
Receivers overseeing the collapsed hospitality empire of Jon Adgemis have completed the sale of four prominent Sydney venues for about $130 million, marking a major step in the unwind of the former publican’s once-expansive portfolio.
According to the Australian Financial Review, McGrathNicol was appointed receiver and manager to five assets held by Public Hospitality in October, after Adgemis was declared bankrupt last year. Four of those properties have now changed hands, with the Exchange Hotel in Balmain remaining on the market.
The sold venues include the South Bondi Hotel, Hotel Diplomat in Potts Point, the Empire Hotel in Annandale and Claridge House. Industry sources say Millinium Capital Managers principal Tom Wallace acquired the Hotel Diplomat, South Bondi Hotel and the Empire Hotel, while Claridge House was purchased by a separate buyer yet to be disclosed.
Wallace has emerged as a significant player in the east coast pubs market, having already acquired several former Adgemis assets over the past year. These include the Town Hall Hotel in Balmain, the Rose, Shamrock and Thistle in Paddington, and the Kurrajong Hotel in Erskineville, building a tightly held portfolio of well-located hospitality venues.
The sales campaign was jointly managed by HTL Property and Colliers, with HTL exclusively handling the Empire Hotel. HTL Property director Andrew Jolliffe said the rapid execution reflected deep investor demand for established hospitality assets in high-profile precincts, despite broader uncertainty across commercial property markets.
Colliers national director Matthew Meynell described the process as one of the most active he has worked on, generating more than 580 enquiries and 46 first-round offers from leading hospitality and tourism investors nationwide.
Adgemis, a former KPMG dealmaker, amassed debts of about $1.8 billion, largely due to personal guarantees provided to fund the rapid expansion of Public Hospitality, which controlled 22 venues at its peak. Among the assets sold, Adgemis paid $68 million for the South Bondi Hotel and about $16.5 million for the Hotel Diplomat in 2022, while the Empire Hotel was acquired in 2021 for $12 million.
Outside Sydney, the Clifton Hotel in Kew, Melbourne, also remains on the market, with sources valuing the property at around $8 million.
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