The State Heritage listed Palais Hotel at Semaphore will remain in public hands after community consultation overwhelmingly urged the State Government not to sell the iconic beachside property.
The decision to retain the Palais as Crown Land follows community feedback on a proposal by the hotel’s operators to purchase the building.
The Government says it will instead progress a new long-term lease for the popular hotel that will provide certainty to hoteliers Semaphore Palais Hotel Pty Ltd (SPH), their staff and the local community.
The new 15-year lease with renewal options allows SPH to make significant improvements to the building to preserve its heritage values.
“The Palais Hotel is a much-loved venue for both Semaphore locals and people from right across Adelaide,” said Deputy Premier, Susan Close.
“As a prominent government-owned building with state heritage value, it was important to consult the community on its future – and the high number of responses shows just how much affection people have for the hotel.
“The new long-term lease agreement aims to provide everyone with certainty. It also gives the hotel’s management team confidence to invest in the building, which will ensure people continue to enjoy this wonderful heritage pub for many years to come,” she said.
More than 1,250 people took part in the consultation 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.
