General Havelock, Rosemont for sale amid hospitality crunch

General Havelock staff member Cameron Groskreutz, left, and Hugo Pedler from Penny Hospitality which is looking to sell the Hutt St pub. Picture: Roy VanDerVegt

Two of Adelaide’s landmark CBD pubs are looking for new owners amid a deepening hospitality crisis that’s forced a string of venues to close their doors in recent weeks.

Just a year after completing a million-dollar revamp of the The General Havelock on Hutt St, Penny Hospitality has listed the business for sale through Shipway Hotel Motel Brokers, which describes it as an “urgent sale”.

The Advertiser revealed earlier this year that Penny Hospitality, which operates several city venues including Paper Tiger bar and West Oak Hotel, had undertaken a restructure resulting in the closure of its marketing unit following a challenging year for the group.

It followed the closure of Gouger St pasta and wine bar Super Bueno in December, which Penny Hospitality’s Hugo Pedler blamed on disruptions caused by the $400m Central Market Arcade redevelopment.

His company acquired The General Havelock in 2022 in a bid to “breathe new life” into the venue as part of a wider plan to revive the Hutt St precinct.

The General Havelock’s renovated front bar. Picture: Brett Hartwig

Shipway Hotel Motel Brokers’ Glen Shipway said the pub presented an opportunity for a new operator to “take the hotel to the next level”.

“There has been a considerable amount of money spent on renovations and with the venue being located in the popular Hutt St precinct, it presents a great opportunity,” he said.

“It is ideally suited for functions, having a great indoor beer garden and upstairs area leading onto the balcony.”

Penny Hospitality’s upgrades to the pub – originally built in 1873 – include a revamped upper level and balcony, and restoration of the front bar.

Meanwhile in the city’s west end, the Angelopoulos family’s Duke Group is looking for a new operator to take over the former Rosemont Hotel on Hindley St, after it closed its doors in February.

Duke Group owns the building where local operator RD Jones Group relinquished its lease earlier this year.

McGees Property hotels & hospitality director Grant Clarke, who’s offering the venue with a new long-term lease as well as plant and equipment, said the sale followed a major refurbishment carried out by previous owner GM Hotels in 2019.

The Rosemont, later known as The Rosey, was once one of Adelaide’s most popular sports bars.

The Rosemont was once one of Adelaide’s most popular sports bars. Picture: Dean Martin

Mr Clarke said hotel transactions were well down on the Covid era, when a combination of low interest rates and investment from eastern states hoteliers created a “frenzy” of activity.

“Certainly the suburban pubs have consolidated and there hasn’t been such a mad rush of transactions, which was promoted because of Covid and low interest rates, and eastern state interest,” he said.

“They’re performing quite well at the moment – the suburban hotels – but the CBD is just really struggling with high rent, high outgoings and still 20 per cent down on city workers.”

In the city’s east end The Stag Public House was listed for sale by hospitality operators Big Easy Group in February, but has since been withdrawn after a buyer could not be found.

Down the road on Rundle St, The Austral hotel faces potential closure over a $100,000 lease dispute, while one of Adelaide’s oldest pubs, the Edinburgh Castle on Currie St, shut its doors in February, just two months after reopening under new management.

Meanwhile liquidators are investigating the collapse of companies that previously operated the Woolshed on Hindley and Black Bull hotels, which are operating under new management.

Despite the challenges facing city operators, it’s a different story in the regions, according to Mr Shipway, who said country hotels were reporting strong trade and generating strong interest from both local and interstate investors.

“Country hotels in the right location are trading very well,” he said.

“I get my website monitored and approximately 70 per cent of the enquiries are from NSW.”

Mr Shipway recently sold the Marion Bay Tavern, the Grosvenor Hotel in Victor Harbor and the Oakbank Hotel in the Adelaide Hills, and is currently looking for operators to take over the Yorke Valley Hotel in Maitland on the Yorke Peninsula.