Erskineville's troubled Imperial Hotel sold for $6.5 million
The iconic Imperial Hotel in Erskineville has been sold, with its new owners undertaking to put an end to the venue's recent troubles.
The hotel was twice subject to a 72-hour closure order by the Office of Liquor, Gaming and Racing - once in June and once in July, on both occasions due to alleged drug-related activity.
Former owner Shadd Danesi kept the pub closed while he negotiated its future with authorities, but ultimately sold it to publicans Scott Leach and Fraser Short for about $6.5 million. Mr Leach is also president of the NSW branch of the Australian Hotels Association and runs the nearby Rose of Erskineville hotel.
For the past 13 years, Mr Danesi ran the Imperial as an LGBTI (lesbian, gay, bisexual, transgender and intersex) venue and said he hoped the new owners would continue that tradition.
The publicans told LGBTI magazine SX they recognised the importance of the hotel to the gay community, but also indicated they would take it in a new direction, with a $3 million revamp to include a high-end restaurant.
"We have stepped up because we are passionate about [the Imperial's] future," Mr Short told the magazine. "It will remain shut in the short term but we are injecting funds immediately to start creating a modern food and beverage option for the venue."
The Imperial ran into trouble after Mr Danesi leased the venue to Spice International earlier this year. Lessee Murat Kilic turned the basement level into a nightclub called Spice Cellar ERSKNVL, having previously run the Spice Cellar as an after-hours club in Martin Place.
Police raided the premises in June and alleged that staff members were using illicit drugs, prompting the first 72-hour closure order. In July, the hotel was closed again after inspectors observed several breaches of the Liquor Act, including a male patron seen licking spilt alcohol off the floor, and a woman appearing to buy drugs.
Mr Danesi and Spice International parted ways following the second closure. But he argued landlords should not be "punished" for the actions of their tenants, calling the legislation "disgraceful".
" Punish the offenders by all means," he told Fairfax Media. "Don't punish innocent people. I personally will never invest in another hotel in NSW as a landlord while this legislation is in place."
Mr Danesi also runs the LGBTI nightclub ARQ at Taylor Square and owns the Sly Fox at Enmore, which is leased to a tenant. Mr Short operates The Morrison in the Sydney CBD and recently bought the Balcony Bar & Restaurant in Byron Bay.
There is no indication yet as to whether a reopened Imperial would adhere to a new voluntary 3am lockout agreed by the local Newtown liquor accord, due to start in September.
Mr Short was contacted for further comment.
Source: The Sydney Morning Herald, Michael Koziol, 28th August 2015
Originally published as: Erskineville's troubled Imperial Hotel sold for $6.5 million
