Karen Wales, Colliers head of hotels in Australia, said the Australian hotel market continues to demonstrate resilience, adding that with the depth of capital and strong trading fundamentals are maintaining steady momentum into 2026.
Sweet loss
The former Darrell Lea shop on George Street is the new home of upmarket retailer Montblanc.
Known for its pens, Montblanc also sells its own line of high-end watches and jewellery. It’s now leasing a tiny 114 square metre site on the corner of King and George streets, which sits near to the Cartier and Louis Vuitton flagship stores.
Montblanc will open a store in George Street.Credit: Getty Images
The heritage building at 396 George Street has been a part of the city landscape for 91 years. Following the closure of the famous lolly store in 2012, Telstra opened its flagship Discovery store on the site in 2014 but shut up shop once its five-year lease expired.
The building is owned by property developer Victor Comino’s Swanvest which put the site on the market in 2018 with an asking price around $30 million. He gave the Lea family $26 million for the corner store in 2015.
Comino also owns the Soul Pattinson chemist in Pitt Street Mall and the buildings that house Louis Vuitton and the Apple store on the adjacent King and George street corners.
Montblanc’s new Boutique Sydney is currently undergoing a fit out. The brand already has a store at 75 Castlereagh Street. Knight Frank’s Alex Alamsyah advised on the lease.
Pub deals
Three more of bankrupt publican Jon Adgemis’ pubs are being sold by receivers.
The pubs on offer are the South Bondi Hotel, known as Noah’s Backpackers in Campbell Parade, the Hotel Diplomat in Potts Point, and the Empire in Annandale.
Part of the former Public Hospitality portfolio, their sale is being overseen by receivers McGrath Nicol. Adgemis was a former director of KPMG and entered the pub world with a bang. He has been declared bankrupt with about $1.6 billion in debt.
The three-level Empire is at 103 Parramatta Road.Credit:
The South Bondi Hotel, a former 260-bed hostel, is empty. Adgemis had plans to transform it into a premier mixed-use hospitality and accommodation precinct.
Hotel Diplomat on Bayswater Road has five floors of recently renovated 51 rooms. The three-level Empire is at 103 Parramatta Road. HTL Property and Colliers are managing all three sales.
Cue clothing
The former Cue Clothing headquarters within the Holt & Hart building at 50 Holt Street in Surry Hills is on the market for the first time since completion in 2011.
Purpose-built for Cue Clothing, the 4613 square metre property stretches across two levels and includes a roof deck and 16 car spaces. It has a price tag between $35 million to $40 million.
Cushman & Wakefield’s Matt Pontey and Miron Solomons and Savills’ Harry George and Guy Baseby are advising on the sale.
