Historic Semaphore Palais Hotel site to stay in public hands

A decision around the landmark Semaphore Palais Hotel site has been made after a bid by the operators to buy the site.

Grand waterfront venue the Semaphore Palais Hotel will stay in public hands after a bid by the operators to buy it was knocked back.

The state heritage listed building on the beachfront — a local landmark in a prime location rich with history — will remain a Crown land site after community consultation overwhelmingly urged the state government not to sell the property.

The government will instead work towards a new long-term lease to provide certainty to hoteliers Semaphore Palais Hotel Pty Ltd (SPH), their staff and the local community.

The planned new 15 year lease with renewal options will allow SPH to make significant improvements to the building to preserve its heritage values while ensuring it is a vibrant part of the hospitality scene.

Hotel owner Steve Karpluk told The Advertiser it would be “business as usual.”

The Semaphore Palais Hotel at sunset. Picture: Mandi Borlace.

More than 1250 people took part in the consultation during March and April, with two-thirds either wanting the government to retain ownership or raising concerns about the proposed sale.

The hotel was built by the Fricker brothers in 1922 and is a prime example of the boom in seaside recreation and tourism at that time.

The complex originally included a bathing pavilion, tearooms, cafe and dance hall, and its striking two-storey building and turret are embedded as a landmark of Adelaide’s coastline.

When it opened in December, 1922, records indicate “two-thirds of Adelaide’s population was in attendance” and an era of dancing to orchestras and big bands followed.

But times and tastes change, it fell into disrepair in the 1980s and was vacant and decaying when entrepreneurs Anthony and Lyneece Schmidt launched plans to refurbish it.

An arsonist’s fire in September 1993 nearly saw it demolished until an engineers’ report declared the dance hall sound, and the Schmidts’ multimillion dollar overhaul restored it to its former glory to reopen in 1996.

The venue at 86 Esplanade now includes a beach bar, bistro, function rooms, gaming and live music.

Semaphore Palais Hotel. Picture: Kirsten Rae.

Deputy Premier Susan Close said the Palais is a “much-loved venue for both Semaphore locals and people from right across Adelaide.”

“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,” she said.

“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.”

The Palais Hotel is leased to the Port Adelaide Enfield Council and subleased to the current occupant SPH which has held the lease since 2007 and has made significant improvements to the property at its own expense.