Solotel takes charge of three Public Hospitality venues
Hospitality veteran Bruce Solomon and his family have taken charge of three Sydney pubs previously operated by Jon Adgemis’ partially collapsed Public Hospitality Group, after striking a deal with receivers of those assets.
Solotel Group will add The Norfolk in Redfern, Oxford House in Paddington, and Camelia Grove Hotel in Alexandria to its portfolio of 30 businesses, which includes such prominent venues as Opera Bar at Circular Quay, the Clock Hotel in Surry Hills and the Golden Sheaf in Double Bay,
The three pubs as well as The Exchange and The Strand Hotel in Darlinghurst were placed in the hands of receivers at FTI Consulting in September by New York-based private lender Muzinich & Co, after it pulled out of a deal to refinance the company’s big debt pile.
Joint receiver Vaughan Strawbridge, from FTI Consulting, said that Solotel had been appointed as the manager of the venues. No real estate has been transacted as part of the deal.
Well-placed industry sources said Solotel was paying turnover rent (rent paid when revenue hits a certain threshold) and had negotiated an option to purchase the properties.
“We don’t make public comment regarding commercial matters,” a spokeswoman for Solotel said in response.
Muzinich holds more than $100 million of Public Hospitality’s debt secured against the five pubs and their operating company. It is understood there has been very little interest in buying the pub freeholds. About $40 million was sought for Oxford House, industry sources said.
Mr Adgemis did not respond to a request for comment. A former KPMG deal maker, Mr Adgemis assembled a portfolio of 19 venues across Sydney with plans to refurbish them and add accommodation and other amenities. A float was mooted but shelved in May 2022.
Later, the group ran into trouble due to mounting interest payments on a $500 million debt pile while only a handful of assets were open and trading. It later had problems refinancing this debt resulting in attempts to sell assets and the appointment of administrators and receivers.
In September, The Australian Financial Review reported that Mr Adgemis had submitted an offer through his private company Jaga Investments to buy the five pubs from receivers. Minutes of an October meeting of creditors disclosed that a deed of company arrangement had been proposed by Mr Adgemis, but that there had been insufficient time to assess it after which the meeting was adjourned. No update has been provided since.
Solotel confirmed it had added the three new pubs to its portfolio in a statement. “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,” said Solotel chief executive, Elliot Solomon.
In another inner-city Sydney deal, the Friend in Hand Hotel in Glebe has sold for the third time in six years to the Ray Reilly-led Riley Group.
The Riley Group will add the property to its stable of inner west hotels including the Sydney Park Hotel (Newtown), Henson Park Hotel (Marrickville), the White Cockatoo Hotel (Petersham) and both The London Hotel and The Cricketers (Balmain).
HTL Property’s Sam Handy, Blake Edwards and Andrew Jolliffe negotiated the circa $6 million sale.
