Leading Sydney operator Solotel has emerged as the new operator of the majority of the Public Hospitality portfolio recently into receivership, adding three inner west pubs to the collection.
Formerly high-flying dealmaker for tax advisor KPMG, Jon Adgemis, came unstuck during a rapid rise to two-dozen hotels, as construction costs and interest rates rose following the pandemic. The ambitious investment scheme became saddled with escalating debt and multiple mortgages from assorted parties.
Despite securing $400 million in fresh finance in May, it was not enough to keep creditors at bay, and in September administrators FTI Consulting swung into action, taking control and listing five of the Public assets.
From this set, Solotel has taken on a lease at The Norfolk in Redfern, Oxford House in Paddington, and Camelia Grove Hotel in Alexandria.
These further its footprint in and around the Sydney CBD, which includes The Abercrombie, The Bank, Barangaroo House, Chiswick, The Clock, The Golden Sheaf, Kings Cross Hotel, North Bondi Fish, Paddo Inn, and the Albion Hotel at Parramatta.
The family-owned hospitality group has recently seen the end of its tenure at the Edinburgh Castle in the Sydney CBD, and brings decades of experience to the new in-flux operations.
“This is an incredibly exciting time for Solotel, and we couldn’t be prouder to be able to revitalise these much-loved venues for their communities and their teams,” says Elliot Solomon, Solotel CEO.
“Each of them already delivers fantastic experiences for their guests and this opportunity means that the teams can access more resources to build on that.”
These acquisitions take Solotel’s family to 30 venues, adding an additional 58 rooms to its accommodation offering while contributing to its longer-term goals.
“It also means we can serve even more areas of Sydney, which is part of our commitment to grow the hospitality industry across this great city, supporting vibrant and thriving communities,” furthered Solomon.
