Historic pub building to remain in public hands

Minister for Climate, Environment and Water Susan Close, who is the minister responsible for administering the Crown Land site, made the decision after reviewing feedback on a proposal by the hotel’s current operators to buy the Esplanade building for its agreed market value.

Instead of selling the property, the state government will progress a new long-term lease for the popular hotel.

This will provide certainty to hotel operator Semaphore Palais Hotel Pty Ltd (SPH), its employees and the local community.

The new lease will also allow SPH to make significant improvements to the building to preserve its heritage values.

The public was consulted on the proposed sale during March and April this year.

Two-thirds of respondents either wanted the State Government to retain ownership of the waterfront building or raised potential concerns about the proposed sale.

The Palais Hotel was built in 1922 and is a prime example of the boom in seaside recreation and tourism in South Australia at that time.

The hotel originally included a bathing pavilion, promenade, kiosk, cafe and dance hall.

The pub’s striking two-storey building and turret remain a landmark of Adelaide’s coastline to this day.

The venue now includes a beach bar, bistro, function rooms, gaming and live music.

The Department for Environment and Water’s Director of Tourism and Commercial Services, Jo Podoliak, thanked the hotel’s operators and the community for taking part in the consultation process.

“The new long-term lease agreement gives the hotel’s management team confidence to invest in the building, which will help ensure its state heritage value,” Ms Podoliak said.