By Marie-Antoinette Issa.
Alongside its retro Art Deco Rivoli Cinemas and bustling Sunday Market that lures vintage lovers, Camberwell locals have long held a soft spot for The Palace Hotel, the stately pub perched on the leafy streets of suburban inner Melbourne.
Yet, with its stained carpet floors holding more than 125 years of history, an upgrade was undeniably long overdue. That call was answered by the ALH Hotels group, which over 11 months, invested $7.5 million to transform this beloved institution.
The renovation, overseen by Cayas + Ward and built by Five One Group, sought to preserve the building’s historic character while enhancing the guest experience. Heritage Listing Victoria ensured that the hotel’s 1888 origins were honoured, from the grand staircase to the restored tiling.
These touches, combined with upgraded kitchens and food and beverage areas, resulted in a two-level, multi-spaced destination that blends historic grandeur with contemporary comfort.
Today, the familiar hum of community still welcomes all who enter via The Palace’s street-level doors - only now it has been polished and perfected. Downstairs, the ground floor is a modern-day great hall of conviviality, where post-work drinks, footy on the big screens or live music lend an old-school - but upgraded - pub ethos.
Venue Manager Neil O’Connor explains: "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.”
This is anything but your average fried footy feed. It’s pub grub reimagined with a sophisticated twist. Think a golden crumbed pork cutlet with a mustard and peppercorn cream, or a barramundi pie that swaps heavy fillings for herbed broad beans, creamed parsnip and a bright lemon butter sauce.
Even the steak frites gets an upgrade, with a 250 g Wagyu flank, bearnaise and crisp salad on the side. Classics like the legendary Palace Burger with chuck brisket, mozzarella, endive, tomato relish and pickles remain, while the Wagyu steak sando comes layered with endive, caramelised onion, mozzarella and garlic mayo.
No pub menu would be complete without a chicken parma, the Palace’s take comes dressed up with prosciutto, fior di latte, basil and confit tomato for a refined riff on a true classic.
Those keen to discover the Palace’s true crowning glory should ascend the restored wooden staircase to Josephine’s Lounge upstairs - a throne room for lingering, sharing and savouring. Here, guests can toast over expertly crafted cocktails or a carefully curated selection of Australian wines, particularly from Victoria and South Australia, with plenty of Spritzes, Margaritas and Espresso Martinis on hand.
Here, the menu is built for social dining, with share-plates and inventive small bites spotlighting native ingredients and all designed to be passed, pulled and savoured. Highlights include the crispy halloumi dressed with pepperberry honey and kaffir lime; crispy fried calamari that swaps traditional mayo for a lemon myrtle-infused one; spicy char-grilled octopus with crunchy macadamia and capsicum sauce; melt-in-your-mouth Wagyu skewers with black garlic and saltbush, and a fresh endive and apple salad.
For something a little more substantial, order a pinsa pizza - with six options of this a lighter, more digestible Roman-style flatbread to pick from, including one topped with prosciutto, caramelised onion, rocket and goats’ curd, or a mushroom, pecorino and truffle option for vegetarians.
Come dessert, The Little Doughnut arrives warm and golden, oozing with zesty lemon aspen curd, while the Espresso Martini Mini Magnum delivers a grown-up treat that layers wattleseed and a kiss of sea salt into velvety decadence, delivering all the richness of a cocktail and an ice cream in one. Small in size but big on flavour, both are unmissable.
This dual personality of The Palace is part of its charm. Downstairs hums with familiarity and ease, a classic local pub elevated by quality and thoughtfulness. Upstairs is more aspirational, a palace of possibility where spontaneous date nights, long lunches and celebratory gatherings unfold in style.
Neil says, "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.”
For foodies and lifestyle seekers, The Palace offers the best of both worlds: the comforting familiarity of a classic pub downstairs paired with the social sophistication and shareable elegance of Josephine’s Lounge upstairs. Its reopening is more than a facelift. It’s a celebration of Melbourne dining, heritage and community under one roof.
Whether you’re after casual catch-ups, a lively night out or a leisurely Sunday lunch with elevated pub fare, The Palace now offers a destination where the historic and contemporary coexist beautifully and where every meal feels like a royal occasion and fit for a King…or a keen local.
