US-based Pride Holdings Group, which acquired the Stonewall Hotel business in Darlinghurst last year, has secured a 10-year lease over the former Kuleto's cocktail bar in Newtown as part of an expansion of the Stonewall brand into Sydney’s inner west, with an opening planned for January.
Known as the Milton Hotel before it was Kuleto's, the 157 King Street venue occupies a prominent position at the northern end of Newtown, just metres from the Marlborough Hotel and Newtown Hotel.
Pride Holdings' securing of the lease follows the $4.1 million purchase of the premises by prominent Sydney publican Greg Magree, a former Stonewall director who is close friends with Kings Cross identity and retired nightlife mogul John Ibrahim and Merivale CEO Justin Hemmes.
In a media release issued at 12.05am AEDT on Friday, Pride Holdings Group said that major refurbishments and upgrades were already under way for the Newtown venue – including improvements to entertainment spaces, facilities, accessibility, and sound and lighting.
It said it planned to open Stonewall Newtown "in early January 2026". However, the venue remained closed as of January 26. On Saturday afternoon, under-awning signage reading "Stonewall Hotel Newtown" was installed outside the bar, while black plastic covered the venue's windows.
Pride Holdings said the upgrades would enable the group to "revitalise and relaunch the venue while preserving its deep cultural and community significance".
It added that the venue would usher in a fresh era of entertainment, inclusivity, and community-driven programming. "The redevelopment aims to elevate the guest experience while honouring the venue's legacy as a safe and welcoming space for the LGBTQ+ community," it said.
Michael Barrett, the group's chief executive, said the venue marked the LGBTQIA+ hospitality company's third expansion into Australia and Asia following the acquisition of a Bali venue late last year that trades under the Stonewall name.
"As we continue to develop our brands in this region of the world, we will look to open more locations around Australia, New Zealand and Asia in 2026 and beyond," he said.
Kuleto’s owner steps away
The sale of Kuleto's and subsequent leasing of it to Pride Holdings ends a 45-year chapter under long-time owner Donna Asensio, 73, who is stepping away from the industry ahead of her retirement.
"I will leave Kuleto's and the Newtown community with a very heavy heart, as it has been my home for the better part of 42 years," Asensio said. "Nonetheless, I'm pleased with the outcome … and look forward to seeing what the incoming operators will do with some fresh ideas and direction.”
Pride Holdings said the lease agreement had been facilitated by Craig Bell, who is a 62-year-old former NSW Police officer and current Pride Holdings director, as well as former co-owner of Stonewall Hotel in Darlinghurst before he and other co-owners sold it to Pride Holdings in July last year.
As part of that transaction, Stonewall's former owners collectively received $9.2 million worth of shares in Pride Holdings Group and Bell was subsequently appointed to the board of the American company.
Company records show a business named Stonewall Newtown Pty Ltd was registered on November 19 last year. The company lists Bell as its director, with CGB Australia Pty Ltd – a company Bell fully owns and controls – its sole shareholder.
Gay Sydney News has previously reported that Bell began his career as a criminal investigator constable with NSW Police before moving into the ownership and management of several hospitality and security businesses. He is also the director and owner of Corporate Protection Services, and is a licensed hotelier and certified risk management professional. According to company records, he currently resides in Mona Vale, on Sydney's northern beaches.
History of person behind acquisition of venue
Industry publication Australian Hotelier, as well as media outlets Gay Sydney News and Star Observer, initially and incorrectly reported last week that the buyer of the Kuleto's premises was Pride Holdings Group. That came about after commercial real estate agency HTL Property said the venue had been "acquired by a new consortium associated with the Stonewall Hotel in Darlinghurst".
However, Pride Holdings confirmed in its 12.05am AEDT media release on Friday that it had secured the lease of the former Kuleto's venue, not the ownership – also known as the freehold.
The two announcements came just days after Stonewall Hotel teased an inner west expansion to Newtown on its Instagram on Monday, January 19, without naming an exact address.
Pricefinder.com.au property records show the freehold of Kuleto's sold for $4.1 million on September 13, while land title records indicate it was acquired by 157 Kingstreet Pty Ltd, a company controlled by Greg Magree, who was a director of the Darlinghurst Stonewall between July 1993 and October 1996.
The 63-year-old South African-born, Sydney-based publican has had hospitality interests in venues including Porteno, The Carrington and Forrester's in Surry Hills; Redfern's Norfolk Hotel; and Fratelli Fresh sites at Walsh Bay and on Bridge Street in the Sydney CBD. Magree's daughter Georgia, otherwise known as GG, is a popular electronic music producer, DJ, and singer who now resides in Los Angeles.
Company records list Magree's residential address as Cronulla and show other members of the Magree family have had longstanding business ties to Stonewall in Darlinghurst.
The records show Graham Magree, who lists the same Cronulla address as Greg Magree and is believed to be his brother, has previously been a shareholder in Darlinghurst's Stonewall business.
Stacey Magree has also been a shareholder through a company called Fetch Financial Pty Ltd, while Magree Corp Pty Ltd is another former shareholder.
The freehold of Stonewall Darlinghurst's main building at 175 Oxford Street remains with the Serafim family, one of whom, Nicholas Serafim, runs Serafim's Pharmacy at Taylor Square.
Correction: This article was updated to clarify that Pride Holdings Group has not acquired the freehold of the former Kuleto's site. Greg Magree, a former director of Stonewall Hotel in Darlinghurst, purchased the property. Pride Holdings Group has secured a 10-year lease and plans to relaunch the venue as Stonewall Newtown.
Ben Grubb is the founder and editor of Gay Sydney News, an independent publication covering LGBTQIA+ news. A journalist with more than 15 years' experience, he has reported and edited for The Sydney Morning Herald, The Age, WAToday, Brisbane Times, The Australian Financial Review, News.com.au, ZDNet, TelecomTimes and iTnews, primarily on the topic of technology. He previously hosted The Informer, a queer current affairs program on Melbourne’s JOY 94.9 radio station, and contributes to LGBTQIA+ media including Stun Magazine. Ben has also appeared as a technology commentator on Channel Ten's The Project, ABC RN’s Download This Show and commercial radio stations 2UE, 2GB and 6PR. Contact Ben: [email protected]
