The owners of the award-winning MacArthur Street establishment, Hotel Canberra, have announced their decision to enter liquidation, a move that has left them “devastated.” This decision was made public following a notice of winding up for Pepaji Pty Ltd, the entity trading as Hotel Canberra, which was listed with the Australian Securities and Investments Commission (ASIC) on November 18, 2025.
Co-owner Pete Dillon revealed that he and his partners were locked out of the venue earlier this week after negotiations with the hotel’s landlords failed. The downturn in business towards the end of 2025 was cited as a key factor in the venue’s inability to sustain itself.
“It has been a pretty hard road for three and a half years; this economy is difficult to work in,” Dillon shared. “September, October, and November were fairly brutal as far as customer numbers.”
Economic Struggles in the Hospitality Sector
The closure of Hotel Canberra highlights the broader challenges faced by the hospitality industry. Dillon emphasized the razor-thin margins that many small businesses operate on, noting that when these margins disappear, businesses can quickly find themselves in dire situations.
“It is a brutal reality of the industry. From hatted chefs across the country to little businesses like ours, there are people going every week.”
Liquidators Liam Bellamy and John Kukulovski have been appointed to manage the liquidation process. The exact amount of debt faced by the business has not yet been disclosed.
A Brief History of Hotel Canberra
The historic hotel reopened in 2022 under the management of Pete Dillon, former Rockpool chef Jigs Liwanag, and Paul Dillon. The group revitalized the hotel with a focus on fine dining, restoring the hotel’s café, bar, and accommodation offerings.
In March 2023, the hotel launched Vesta x Jigs, a restaurant specializing in Victorian produce and six-course degustations. However, by November 2024, the hotel voluntarily entered administration due to the challenging market conditions for hospitality operators and rising cost-of-living pressures.
The venue continued to trade throughout the administration period and reopened in February 2025 with a new à la carte menu. Despite these efforts, the economic environment proved too challenging to overcome.
Looking Ahead
Despite the setback, Pete Dillon remains committed to the community. “We are going to take some time to regroup. We are not going to leave; we are committed to Ballarat as a city,” he stated. “This is really tough for us.”
The closure of Hotel Canberra serves as a stark reminder of the vulnerabilities faced by small businesses in the current economic climate. As the industry continues to navigate these challenges, the call for local support has never been more critical.
As the liquidation process unfolds, the impact on the local economy and the future of the venue remains to be seen. The story of Hotel Canberra is a microcosm of the broader struggles within the hospitality sector, highlighting the need for resilience and community support in these trying times.
