Merivale's management fee structure reveals scale of the Hemmes empire
Justin Hemmes' Merivale hospitality empire has recorded revenues of $628.7 million for the year to June 29, according to newly filed accounts lodged with the Australian Securities and Investments Commission (ASIC).
The accounts, filed under the Hemmes Group entity jointly owned by Justin Hemmes and his sister Bettina, reveal a business that has grown significantly from the $617.8 million in revenues recorded in the prior financial year. Despite that top-line growth, the group recorded a net loss of $6 million, reversing an $8.9 million profit from the previous 12-month period.
The primary driver of that swing was a substantial payment to Hemmes Administration Trust — the entity responsible for paying staff wages and salaries across the Merivale portfolio — which received $279.8 million in management fees during the year, up from $249 million the prior year. Additional property fees of more than $90 million over the two-year period were paid to other entities within the broader Merivale Group.
The financial filings paint a picture of a vertically integrated operation with payroll and property costs centralised across the group structure.
Food and beverage sales accounted for the majority of revenues, though gaming contributed $56.7 million, approximately nine per cent of total revenues. The number reflects Merivale's position as a significant poker machine operator across its network of Sydney venues.
Hemmes has spent decades expanding the business his father established, transforming a fashion house into what is now one of Australia's largest private entertainment groups.
The company made its hospitality pivot in 1992 with the takeover of Hotel CBD, and has since built a portfolio spanning the Sydney CBD including Establishment and Ivy and suburban pubs such as the Three Weeds in Rozelle, The Royal in Bondi and The Dog in Randwick. More recent openings extend to Narooma on the NSW South Coast and the Victorian coastal town of Lorne.
Expansion ambitions beyond Sydney have faced headwinds. Merivale withdrew earlier this year from a consortium with Lendlease and Mirvac that had been pursuing development rights above the Hunter Street metro station — adjacent to the Ivy precinct.
In Melbourne, where the group has committed $110 million to CBD real estate acquisitions over four years, the company has met resistance from established local interests including the Melbourne Club, a heritage social institution near the proposed venue site.
The Financial Review Rich List placed the combined wealth of Justin and Bettina Hemmes at $1.58 billion, representing an eight per cent increase on the prior year.
Jonathan Jackson, 11th May 2026
