Kuleto’s Hotel in Newtown has been revealed as the site for the next generation of world-renowned Sydney LGBTQ venue the Stonewall Hotel, after its sale for the first time in over four decades.
The wedge-shaped three-storey pub is a prominent sight on King Street, close to precinct stalwarts the Marlborough, Newtown and Coopers hotels, around six kilometres south-west of the Sydney CBD.
It holds 3am extended trading authority (Monday-Saturday) on the ground and first floor and midnight approval for the rooftop beer garden, but reports modest custom, typically closed Monday to Wednesday.
Formerly known as the Milton Hotel, it has been owned by Melbourne-based hotelier Donna Asensio for 44 years, with local managers employed for the day-to-day.
The undercooked freehold going concern was offered to market in 2025, with Asensio citing an exit from the industry and impending retirement.
Amid dogged demand and limited supply for inner west and city fringe hotels, it has now been acquired by a new consortium associated with but separate from the Stonewall Hotel in Darlinghurst for a price in line with market guidance, thought to be around $5 million.
Asensio says she is pleased with the outcome and looks forward to seeing what the incoming operators will do.
“I will leave Kuleto’s and the Newtown community with a very heavy heart, as it has been my home for the better part of 45 years,” she laments.
Marketing literature noted the asset would benefit from a refurbishment and an updated f&b offering. The site’s SA2 (green) zoning also allows the option of the introduction of gaming machines.
Oxford Street’s Stonewall Hotel has been a cornerstone of the precinct’s nightlife for a generation, first opening in 1997.
Mid-2025 the operation was acquired for an undisclosed amount by US-based hospitality company Pride Holdings Group (PHG), touting aspirations to expand the Stonewall brand across Australia and into the Asian market.
PHG CEO Michael Barrett said they saw it as “the number one LGBTQ entertainment complex” in the country, and the new consortium has now begun the anticipated expansion with news of the second venue, in Newtown, revealed last month.
Stonewall Newtown will reportedly be an inclusive creative hub championing self-expression, community and the artistic flair of the Inner West. It will focus on performance, showcasing drag, cabaret, live music and queer entertainers, supporting new and established artists.
“We definitely want to listen to the people and try to give them what Newtown wants under the Stonewall brand,” says Stonewall marketing manager Glenn Hansen.
The divestment campaign was managed by HTL Property’s Blake Edwards and Sam Handy, who proffer Sydney’s inner-city market will likely enjoy “sustained investor interest” over the next 12-18 months.
“Kuleto’s is an important part of the history and fabric of the Newtown community, and the locals should rest assured that the incoming operator will be a more than worthy custodian of the business,” suggests Edwards.
