Merivale's Club Rose Bay beer garden draws council scrutiny
Hospitality heavyweight Justin Hemmes is navigating a regulatory challenge at his newly opened Club Rose Bay, after Woollahra Council flagged that the venue's outdoor beer garden was operating without development approval.
The outdoor space — built on what was submitted to council as a carpark in plans lodged in August last year — had been transformed into a sprawling alfresco dining and drinking area, complete with palm trees. The discrepancy only came to the council's attention in November, despite Hemmes having publicly teased the "oasis" concept on social media just days after the original application was filed.
Merivale's position is that the land in question is Crown land and therefore exempt from requiring council consent. Council is contesting this.
If the matter escalates, it would require sign-off from two NSW ministers to resolve.
The council's formal warning period has now lapsed, leaving it with a limited toolkit: an initial fine of $6,000, or — if Merivale declines to comply with any subsequent order — proceedings in the Land and Environment Court, where penalties can reach $1.1 million plus $110,000 per day of non-compliance.
A Merivale spokesperson said the company is continuing to engage constructively with the council, adding that documentation previously submitted related to an already-approved consent and was separate from the matters currently under discussion.
Jonathan Jackson, 25th February 2026
