Public Hospitality Group, the hotel empire founded by former KPMG dealmaker Jon Adgemis, is set to overhaul its management after successfully closing a refinancing deal with Deutsche Bank and other lenders.
“This transaction underscores the confidence that our financial partners have in both our real estate assets and our long-term vision for the business,” Adgemis told The Australian Financial Review.
“The strengthened financial foundation will allow us to accelerate our strategic initiatives, enhance our properties, and further elevate our exceptional property portfolio.”
Mr. Adgemis had built a portfolio spanning from the Karen Martini-fronted St Kilda diner Saint George in Melbourne to a series of pubs in inner Sydney, including The Strand Hotel and Noah’s Backpackers hostel at Bondi Beach. However, Public Hospitality was burdened with significant debts to various lenders, necessitating the refinancing.
The refinancing, completed this week, was arranged by Archibald Capital and anchored by Deutsche Bank and GEMI Investments. Muzinich & Co became a funder to key Public Hospitality properties in June.
Public Hospitality stated the transaction would allow it to make “significant property improvements” to sites in Bondi, Darlinghurst, Balmain, Potts Point, and Annandale. Mr Adgemis is expected to focus on developing those assets, with a new team to run the business to be announced soon.
The refinancing will also help the group restructure and stabilize its operating businesses, providing certainty for staff and suppliers.
Mr. Adgemis noted that Public Hospitality’s staff and suppliers had “demonstrated incredible loyalty and resilience” as the group navigated its challenges. The Financial Review reported, for example, that one venue had difficulty securing a gas connection and was using LPG canisters.
Source: Financial Review.
