More of the bankrupt Jon Adgemis Public Hospitality portfolio has been listed, bringing the sprawling South Bondi Hotel and recently refurbished Hotel Diplomat Potts Point to the fore.
These are two of the five Public assets repossessed by lender Deutsche Bank in September, which also included the closed for renovation Exchange in Balmain and Claridge House in Darlinghurst, and the already listed freehold going concern of the Empire Hotel in Annandale.
Mere metres from Sydney’s spectacular Bondi Beach, with an elevated northerly outlook over the breakers, the South Bondi Hotel (SBH) was previously known as Noah’s Backpackers, configured as a 260-bed hostel on the 866sqm site.
Adgemis bought the prized Hotel in 2022 for $68 million from the Harkham family, who acquired it in 1997 for $5.6 million.
Located in the heart of South Bondi strip, Public’s plan was to transform the venue into an upmarket hospitality and accommodation precinct. It is offered with plans for 53 accommodation rooms, café retail, and multiple bar areas – including a terrace with uninterrupted views.
However, holding a 12.5-metre height limit, with potential to negotiate for even higher with Waverley Council, it is a significant development opportunity in a premium coastal location that could become another destination venue to meet the growing demand and historical undersupply in the immediate area.
The SBH is being sold with the option of vacant possession, facilitating an owner-operator or an investor installing their own management.
Located on Bayswater Road in Potts Point, within the vibrant Kings Cross entertainment precinct, Hotel Diplomat is close to public transport and surrounded by world class restaurants and a thriving nightlife scene.
It comprises five floors of quality accommodation with 51 recently renovated rooms, plus potential for two ground floor retail tenancies fronting Bayswater Road, and is well positioned to benefit from the area’s strong population growth and vibrant urban culture.
Public purchased Hotel Diplomat in 2022 for around $16.5 million and outlaid significant capital on the refurbishment.
Sale campaigns on the assets are under instructions from McGrath Nicol, appointed receivers and managers by Deutsche Bank, and being managed by HTL Property’s Andrew Jolliffe, Andrew Jackson and Sam Handy, in conjunction with Colliers’ Matthew Meynell, Karen Wales and James Cowan.
They are available separately or in one line.
“[The SBH on] Campbell Parade, Bondi, is a truly iconic beachfront property located at Sydney’s most famous beach; a rare blank canvas and the opportunity to transform the building into a landmark that defines coastal living,” states Colliers’ Matthew Meynell.
As accommodation continues to bolster the bottom line of an increasing number of pubs, data for Q3 2025 reports substantial year-on-year growth in performance metrics across the key indicators, being occupancy, average daily room rate (ADR) and revenue per available room (RevPAR).
“We wholly expect the stronger trading performance to be reflected in augmented investment
momentum and further growth going into 2026,” adds HTL’s Andrew Jolliffe.
“The Sydney accommodation market remains one of Asia Pacific’s most sought-after hotel investment markets, historically outperforming all other Australian capital cities.”
