Justin Hemmes' struggles expanding Merivale empire into Melbourne's hospitality market
Consensus Summary
Justin Hemmes, the billionaire behind Sydney’s Merivale empire, has faced significant challenges expanding into Melbourne’s hospitality scene despite spending over $110 million on properties. His first Melbourne venue, LB’s Record Bar, remains the only operational Merivale site, while major projects like Tomasetti House on Flinders Lane and the Lorne Hotel have encountered delays. Tomasetti House, bought for $40 million in 2021, was supposed to open by 2023 but is still under construction, with costs projected to exceed $100 million. Hemmes’ aggressive expansion strategy, including acquisitions like the Lorne Hotel for $38 million, has been met with local resistance and operational hurdles. Allegations of labor exploitation and sexual misconduct at Merivale venues have further complicated his Melbourne push, with Hemmes refusing interviews and denying wrongdoing. Despite high-profile endorsements from Melburnians and a strong brand following, his ventures have struggled to match the success of his Sydney operations.
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Key details reported by multiple sources:
- Justin Hemmes is the head of the $3 billion Merivale empire, which started in fashion (House of Merivale) and expanded into hospitality and property.
- Merivale has over 80 venues across Sydney.
- Hemmes bought Tomasetti House on Flinders Lane in Melbourne for about $40 million in 2021.
- Hemmes bought Kantay House in Meyers Place for about $15 million in 2023.
- Hemmes bought the City of Melbourne’s Parkade car park in Bourke Street for $55 million in 2025.
- LB’s Record Bar on Meyers Place is the only operational Merivale venue in Melbourne despite an outlay of $110 million in property alone.
- Tomasetti House, a heritage-listed building dating back to 1853, was initially planned to open a multi-level venue with a Chinese restaurant by 2023 but is now three years behind schedule.
- Chef Jowett Yu, previously of Mr Wong in Sydney, was signed to lead the Chinese restaurant at Tomasetti House and relocated from Hong Kong.
- Hemmes bought the Lorne Hotel on the Great Ocean Road for $38 million in 2021.
- The Lorne Hotel came with a licence for 10 poker machines, which generated $671,000 for Merivale in 2025.
- Merivale owns at least 500 poker machine licences across its pub business, which brought in $55 million in 2023.
- Hemmes declined all interview requests and refused to speak to The Age and The Sydney Morning Herald after investigations revealed allegations of underpaying staff, exploiting women, encouraging sex with customers, sexual harassment, and facilitating drug use.
- Merivale denied the allegations and accused The Age and The Sydney Morning Herald of harassment.
- Totti’s, Merivale’s Italian restaurant brand, opened at the Lorne Hotel with a 1970s ski chalet vibe.
Points of Difference
Details reported by only one source:
- The Age restaurant critic Besha Rodell described Totti’s as 'bombastic but also quite safe' with food engineered to appeal to as many people as possible.
- The total cost to complete Tomasetti House is projected to exceed $100 million, including purchase price, stamp duty, legal fees, architectural design, and fitout, according to the Herald Sun.
- Hemmes did a deal with Josh Rudd (owner of surf brand Ghanda) for the Grand Pacific Hotel to serve as accommodation for Merivale’s employees in Lorne.
Contradictions
Conflicting information between sources:
- The articles do not contain any direct contradictions between sources.
Source Articles
Justin Hemmes wanted to ‘Sydney-fy’ Melbourne. Then he poked a bear: The granddaddy of Melbourne’s elite clubs
The perma-tanned king of an 80-venue empire is discovering that in Melbourne’s laneways and exclusive clubs, even a billion-dollar brand can be kept waiting at the door.
Justin Hemmes wanted to ‘Sydney-fy’ Melbourne. Then he poked a bear: The granddaddy of Melbourne’s elite clubs
The perma-tanned king of an 80-venue empire is discovering that in Melbourne’s laneways and exclusive clubs, even a billion-dollar brand can be kept waiting at the door.