THE advertising veteran John Singleton and investment banker Mark Carnegie are set to add to their pub empire with the purchase of Paddington landmark The Bellevue Hotel.
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The famous watering hole in Hargrave Street is owned by well-known chef Damien Pignolet. His co-owner, psychologist Ron White, died in May while on a walking holiday in Britain.
The pair bought The Bellevue from publican Susie Carleton and political lobbyist Eric Walsh for $5.5 million in 2004 .
Under Carleton and Walsh's 25-year stewardship, The Bellevue was a renowned Labor party haunt, the scene of wild celebrations for Paul Keating's ''True Believers'' victory and an even wilder one to celebrate the life of Labor stalwart Mick Young.
The purchase price for The Bellevue has not been disclosed as the deal is not expected to be finalised until tomorrow.
Mr Singleton and Mr Carnegie have bought a string of hotels this year including Kinselas in Darlinghurst for $12 million and the Manly hotel The Steyne for about $28 million.
They also bought the Peakhurst Hotel earlier this year from bankrupt publican Richard Wynne for about half the $20 million that Mr Wynne paid for it only a year earlier.
The pub investments are being done through Mr Carnegie and Mr Singleton's bankrolling of the Riversdale group, run by Paddy Coughlan and Rod Kelly.
The hotel industry has slumped over the past 18 months. Many hotels have been selling for greatly reduced prices. According to Mr Coughlan, many publicans have relied too heavily on profits from poker machines and have not paid enough attention to hospitality.
The consortium's plans for Kinselas include refurbishment of the upstairs bar and the opening of an entertainment venue on the third floor.
It is likely that Mr Singleton and Mr Carnegie will add more pubs to their portfolio. Mr Coughlan said the group had between $50 and $100 million to buy distressed hotels.
''Once we reach our initial target of $100 million we plan to take the distressed pub fund public with the backing of our consortium and investors,'' Mr Coughlan has said previously.
