The State Government has announced that the historic Palais Hotel in Semaphore will remain a public possession following a strong wave of community support against its sale. This outcome comes after a vivid community consultation phase which highlighted the property’s sentimental value among the public and raised several concerns regarding its proposed sale.
The State Heritage-listed Palais Hotel, built in 1922, has been a cornerstone of seaside leisure and tourism development along Adelaide’s coastline from its early days. Originally designed to include a range of recreational facilities like a bathing pavilion and dance hall, the hotel continues to be a standout feature with its striking two-storey structure and distinctive turret.
Over 1,250 individuals participated in the consultation process held in March and April, revealing a strong preference for the government to retain ownership. A notable two-thirds of respondents were either in favour of continued state ownership or expressed concerns about the hotel shifting into private hands.
Responding to the community’s sentiment, the State Government decided against selling the hotel to its current operators, Semaphore Palais Hotel Pty Ltd (SPH). Instead, a new 15-year lease arrangement with renewal options has been planned. This lease will not only offer security to the operator but also to its employees and the local community. It will allow SPH to undertake essential improvements ensuring the conservation of the property’s historic features.
Deputy Premier Susan Close stated, “The Palais Hotel is a much-loved venue for both Semaphore locals and people from right across Adelaide.” She acknowledged the heritage property’s importance by adding, “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 terms of the new lease aim to balance public ownership with private operation, ensuring the hotel can continue to serve as a hub of community and tourist activity without foregoing its heritage attributes. “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,” Close added.
Currently, the Palais Hotel comprises a beach bar, bistro, multiple function rooms, gaming facilities, and hosts live music events, making it a vibrant focal point along the beachfront.
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