07-08-2025
Newcastle brothel up for lease as industry woes continue
A legal Newcastle brothel with chains hanging from the ceilings and red lights in the rooms has come up for lease for the second time in 18 months as the adult industry continues to face challenges.
Now known as Emotions Gentlemen's Club, the property on Hunter St has been listed with a lease of $74,000 a year.
The business' website describes Emotions as a 'refined gentlemen's club' and 'a discreet sanctuary where pleasure meets relaxation'. It is also described as a location where 'indulgence knows no limits'.
The property with five bedrooms and multiple ensuite showers has been sold twice since 2018 and operated by three different companies in the last three years.
According to it sold in 2018 for $650,000 and in 2022 for $935,000.
The property was listed for lease last year when it was home to Madam P Adult Entertainment Club, which launched its business on the premises in October 2022.
Eighteen months prior, the landlord completed extensive renovations on the site.
Before that, the property was operated by another adult service provider, Luxe Entertainment.
According to the listing, the building 'has been approved and operating with this use since the early 90s'.
Now, the listing claims, 'the opportunity has arrived for new operators'.
With five separate rooms across three levels, the listing says 'it is equipped with all that is needed to start trading.'
Listing agent Jason Morris from Movable said the property was best set up to continue operating in the same industry.
'The property is set up for that so I think it would be hard for another business to come in,' he said.
'We haven't found a tenant yet, but a lot of the value is in the license,' he said.
In recent years a number of old brothels have been sold as residential listings, marketed on their development potential.
Earlier this week, Bondi Icebergs founder Maurice Terzini listed his Potts Point terrace which had previously operated as a brothel.
The listing for the Kellet St property – once known as Michelle's – claims that 'it holds valuable mixed-use zoning and DA approval for conversion to a residential dwelling'.
Closures, rebrands and the pivot towards residential conversions have come as a result of a difficult few years for the brothel industry.
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Gentrification, financing difficulties and competition from illegal massage parlours and online escort agencies have heavily impacted these businesses.
In a previous report, businessman Milan Stamenkovic – the former owner of a multimillion-dollar brothel on the north shore – said many licensed brothels were struggling due to this competition.
'It can be hard,' he said. 'In this industry, 20 per cent of the businesses make 80 per cent of the revenue.'
