Two Sydney venues of bankrupt publican Jon Adgemis hit the market
Receivers of the bankrupt publican Jon Adgemis have listed two of his accommodation venues for sale, the South Bondi Hotel and Hotel Diplomat in Sydney, adding to the tally of his former properties to hit the market this year.
The two venues are among five assets owned by Adgemis’ Public Hospitality that lender Deutsche Bank took control over in September, including The Empire Hotel in Annandale, The Exchange in Balmain, and Claridge House in Darlinghurst. The South Bondi Hotel in Bondi Beach was formerly known as Noah’s Backpackers.
Deutsche appointed McGrathNicol as receiver over the five properties, and KordaMentha has also been brought in as voluntary administrator over Public Hospitality, which operates the venues.
The ex-KPMG dealmaker has accumulated $1.8 billion in debts, largely from personal guarantees he gave on loans to develop Public Hospitality, and has since been declared bankrupt.
HTL Property’s Andrew Jolliffe, Andrew Jackson and Sam Handy, as well as Colliers’ Matthew Meynell, Karen Wales, and James Cowan, are managing the campaigns for the latest venue to be put up for sale.
Adgemis bought the South Bondi Hotel – it was formerly known as Noah’s Backpackers – for $68 million and Hotel Diplomat for about $16.5 million in 2022, according to Cotality data.
South Bondi Hotel is a former 260-bed hostel, which Adgemis planned to turn into a hotel at the time of the purchase. Set on an 866-square-metre block with views out to Bondi Beach, the listing comes with plans to develop 53 accommodation rooms and multiple bar areas.
The five-storey, 51-room Hotel Diplomat on Bayswater Road in Potts Point has recently been renovated and has the potential for two ground-floor retail tenancies.
“[South Bondi Hotel at] 2–12 Campbell Parade, Bondi, is a truly iconic beachfront property located at Sydney’s most famous beach,” he said. “[It’s] a rare blank canvas and the opportunity to transform the building into a landmark that defines coastal living,” Collier’s Mathew Meynell said.
“The Diplomat Hotel in Potts Point is perfectly positioned to benefit from the area’s strong population growth and vibrant urban culture.”
They’re not the only venues of the embattled publican to be put up for grabs this year, as Adgemis’ former empire is progressively broken up and sold off.
In August, insolvency specialists FTI Consulting listed The Clifton Hotel in Kew, Melbourne’s inner east, for sale with market sources valuing it at about $8 million. Adgemis acquired it for $6.8 million just four years ago.
Adgemis’ Kurrajong Hotel in Erskineville, Sydney’s inner west, sold for about $20 million in September. It had undergone an extensive renovation and did not reopen.
In the same month, New York lender Muzinich & Co called in FTI Consulting as receivers for Adgemis’ other Sydney-based venues Oxford House, The Norfolk, The Strand, The Exchange in Darlinghurst and Camelia Grove Hotel, with BDO appointed administrator of the operating company behind the assets, Public Lifestyle Management.
Adgemis established his pub business, Public Hospitality, in 2021 and amassed a portfolio of 22 venues before its collapse.
