ALH Hotels has reopened the doors to the Palace Hotel after an extensive $7.5 million dollar renovation that repositions the Camberwell pub as a dual-level destination.
Originally built in 1888, the hotel has been updated with modern amenities, blending heritage features with contemporary hospitality to create distinct experiences across two levels.
The ground floor space has been enhanced with a warm colour palette and comfortable furnishings suited to relaxed gatherings, sports viewing and live entertainment. Upstairs, the restoration of the first floor introduces Josephine’s Lounge, a space for patrons to enjoy cocktails and an elevated food menu.
In addition to renewed food and beverage areas on both levels, the renovation also includes a new kitchen, a dedicated sports vision nook, and external upgrades to the façade, lighting and signage.
As a nod to the building’s history, original heritage tiles were revealed during the renovation, and another standout feature is the exposed spiral corner, which draws the eye from the first-floor bar up to the building’s spire. An original wooden staircase has also been restored within the first-floor function room, which holds up to 60 guests.
Venue manager Neil O’Connor commented: “The Palace Hotel has always held a special place in Camberwell, and this renovation ensures it will continue to be a cherished gathering spot for generations to come. We’ve created a unique offering that caters to every mood and occasion, from a casual weeknight to a sophisticated evening out, all built around a serious dedication to quality food and beverage.
“Downstairs, it’s your classic local, but elevated. You can count on a frosty beer, a great pub meal, and that familiar hum of community. It’s the perfect spot for walk-ins looking for that classic Melbourne pub experience, delivered with the quality you expect from a venue that truly values its food and beverage offering.
“Upstairs at Josephine’s Lounge is where the night feels like it could go anywhere. Whether it’s a spontaneous date night, a pre-planned celebration, or that quick catch-up that turns into a long lunch,” O’Connor continued.
A revitalised food offering is central to the offering across both levels, with a focus on high quality produce. Spearheaded by Tony Moss, ALH Hotels’ executive chef in Victoria, the menu at Josephine’s Lounge features sharing and snack plates including hand-stretched Roman-style pizza, while the ground floor focuses on classic pub meals.

“Upstairs, at Josephine’s Lounge, you can’t go past the smoked barramundi brioche. It’s a playful snack which showcases iconic Australian barramundi with a touch of Yarra Valley caviar,” Moss explains.
“And if you’re dining downstairs, the pork cutlet is a true classic, elevated by a mustard cream sauce that’s rich and delicately spiced with a beautiful veal stock base. To finish, the lemon myrtle curd donut is an absolute winner – it’s dusted in vanilla lime sugar and filled with a zesty curd that keeps you coming back for more.”
Complementary to the new food offering, the wine selection at the Palace Hotel champions Australian wines alongside a classic cocktail list featuring Margaritas, Spritzes and Espresso Martinis, and a selection of beers.
ALH’s venue renewal focus
ALH Hotels’ renovation of the Palace Hotel forms part of the group’s national renewal strategy, which has so far included the $2.3 million update of The Pub Mooloolaba and the $1.7 million refurbishment of Cherry Hill Hotel in Doncaster East, Melbourne. The group has also completed significant renewal projects for the Crows News Hotel in Sydney’s north and the Manly Hotel in Brisbane.
ALH managing director, Paul Carew, says: “This significant investment in the Palace Hotel is a tangible representation of Endeavour Group and ALH’s deep commitment to revitalising and celebrating the heart of Australian communities – our pubs.
“We’re taking our redevelopments seriously to ensure every ALH venue, like the Palace Hotel, sets a new standard for customer satisfaction. We believe in honouring the rich history of these iconic venues while innovating, to deliver truly outstanding food and beverage experiences.”