Menzies Hotel faces uncertain future as dispute develops between owner, tenants

Menzies Hotel faces uncertain future as dispute develops between owner, tenants

A small town in the heart of WA’s Goldfields faces the prospect of losing its only pub as concerns grow over the historic building’s safety.

But tenants at the Menzies Hotel claim they are being prematurely forced out by the landlord and local shire.

Sue and David Wessely were this week issued with an order to vacate the premises, which the shire said was “in a dangerous state and unfit for human occupation”.

The Menzies Shire’s building order was drawn from a six-month-old engineering report that was commissioned by Ms Wessely as a “proactive step”, after concerns were raised by a shire surveyor during a routine inspection.

But the Wesselys are also at loggerheads with the landlord, Sudhir Sudhir, who they say has not made any serious attempt to rectify the hotel’s structural issues.

A woman stands behind a bar.

Sue Wessely says the Menzies Hotel is an integral part of the small Goldfields community.(Supplied: Sue Wessely)

“The owner couldn’t get an engineer’s report, and I didn’t want the pub to shut down as it’s the hub of the community,” Ms Wessely said.

Mr Sudhir, who is also deputy president of the Menzies Shire, said public safety was his “number one priority”.

He did not wish to comment further at this time.

The Menzies Shire also declined to comment.

Repairs likely to cost ‘vast sum’

The Wesselys signed a three-year lease in February 2023.

They have since operated the pub and adjoining general store.

The preliminary damage report from October found the building — which is more than 120 years old — was in a “dilapidated condition” and had “not received the minimum necessary level of maintenance over recent years”.

But in further correspondence to Mr Sudhir and the Wesselys, the engineer clarified that, while it would cost a “vast sum” of money to complete the necessary improvements, they “have not stated that the building is beyond salvation”.

The Wesselys are questioning whether the building is fit to be leased in the first place.

“It’s in exactly the same condition as when we moved in,” Mr Wessely said.

“The building hasn’t moved; nothing has fallen out.”

The report found that further investigation would be required to “accurately map the full extent of the structural damage”.

Man standing out the front of an outback pub.

Sudhir Sudhir bought the property in 2019.(ABC Goldfields: Jarrod Lucas)

At its November meeting, the Shire of Menzies resolved to issue a building order to the hotel’s owner [Mr Sudhir]with work to be carried out “in the specified timeline”.

Mr Sudhir had left the meeting prior to the decision, having declared a conflict of interest.

In an interview with local media in February, Mr Sudhir flagged full or partial demolition of the building.

“We’d heard that he was going to knock the hotel down,” Mr Wessely said.

“And that wasn’t what we’d at all been talking about.”

Then, on February 26, Mr Sudhir wrote to the Wesselys to inform them that the lease had been terminated due to the building’s “precarious state”.

But the tenants refused to accept, telling Mr Sudhir on March 1 that he had failed to comply with his landlord obligations and “take actions to repair the premises”.

A drone shot of an outback pub.

The Menzies Hotel is more than 120 years old.(ABC Goldfields: Robert Koenigluck)

‘Fabric’ of the community

The Wesselys said they would fight to keep the pub’s doors open for as long as possible.

They said they would lodge an appeal with the State Administrative Tribunal against the Menzies Shire’s order to leave the building.

They have been given 30 days from the date the building order was issued.

They say the hotel, popular among locals and tourists, was the beating heart of the old gold mining town, about 130 kilometers north of Kalgoorlie.

“It’s a fantastic hotel, and the main fabric that runs through this community,” Mr Wessely said.

“And it does a roaring trade.”

In an interview with ABC Goldfields in February, Menzies Shire president Paul Warner said “a lot of people” had attended a town meeting about the future of the hotel.

“None of us want it knocked down,” he said.

“If we could save it, that’d be even better — but we’re talking millions [of dollars].”

Posted , updated

Rock City Hotel presented best proposal for 60% stake in four hotels

The Social Security and National Insurance Trust (SSNIT) has explained its decision to sell a 60% stake in its hotel to Rock City Hotel owned by Dr Bryan Acheampong, the Minister for Food and Agriculture.

SSNIT’s response came after North Tongu MP, Samuel Okudzeto Ablakwa, petitioned the Commission on Human Rights and Administrative Justice (CHRAJ) to investigate and stop the sale of six hotels including Labadi Beach Hotel, La Palm Royal Beach Resort, Elmina Beach Resort, Ridge Royal Hotel, Busua Beach Resort, and the Trust Lodge Hotel to the Abetifi MP.

Mr Ablakwa’s petition to CHRAJ seeks an investigation into various allegations, including conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.

“In my petition, I am inviting CHRAJ to investigate grave matters concerning conflict of interest, abuse of power, lack of due process, procurement breaches, cronyism, and graft.”

“I have also drawn attention to blatant violations of Article 78(3) and 98(2) of the 1992 Constitution as diligent checks from Parliament’s Committee on Office of Profit revealed that Hon. Bryan Acheampong has not applied and does not have the permission of the Speaker of Parliament to hold an office of profit,” he said.

But SSNIT in a response explained that the decision to partner with an investor is to raise capital to invest in their hotels, and also assist in their management, started as far back as 2018 through International Competitive Tendering (ICT) processes as prescribed by the Public Procurement Act.

In a press release, the Trust stated that the process started in November 2018 after it had employed a Transaction Advisor, to guide the selection of a Strategic investor among others.

“The Trust commenced the process with the engagement of a Transaction Advisor through the ICT method of procurement, with publication of advertisements in the Daily Graphic on 14th November, 2018 and in the Ghanaian Times on 15th November, 2018.

“The advertisement was also published in an international magazine, The Economist in its January 5-11, 2019 edition.
As of the January 16th, 2019 deadline, fifteen (15) firms had expressed interest in submitting bids. Of these, six (6) were shortlisted and issued with Request for Proposal (RFP) documents.

“Approval was sought from the Central Tender Review Committee (CTRC) for the selection of a Transaction Advisor on 12th December 2019 and that was granted on 24th December 2019. Following the selection of the independent Transaction Advisor to guide the selection of a Strategic investor among others others, further advertisements for an Expression of Interest (EOI) for a Strategic Partner for the SSNIT Hotels were published in the Daily Graphic on 3rd February 2022 and in the Ghanaian Times on 7th February 2022. The advertisement was also published in The Economist Magazine on 26th February 2022.”

“Based on the criteria set out in the RFP, Rock City Hotel submitted the best and strongest technical and financial proposal among those received. consequently, it is in negotiation with SSNIT to buy a 60% stake in each of the four (4) hotels (Labadi Beach Hotel, La Palm Royal Beach Resort, Ridge Royal Hotel and Elmina Beach Resort).

“Bids for Busua Beach Resort and the Trust Lodge were considered to be unsuccessful so they are no longer part of the hotels covered in this process.”

Click HERE to read the full Media Release from SSNIT