In a significant move for the Illawarra's dining scene, Wollongong City Council has selected a Sydney-based hospitality powerhouse to take over the iconic Lagoon Restaurant site at Stuart Park.
A New Chapter for a Wollongong Icon
The council's decision, made unanimously during a meeting on Monday, December 15, 2025, grants the lease to The Grounds of Alexandria Pty Ltd. This company is renowned for its wildly popular The Grounds of Alexandria venue, a destination that has achieved global social media fame. The council's choice followed a competitive tender process, where The Grounds' submission prevailed over the only other bidder, Top Pub Mittagong, which operates the Mittagong Hotel.
The new agreement is for an initial five-year term, with a further five-year option available. This marks the end of an era for the current operators, who have held a 20-year lease on the council-owned site since 2006. That existing lease is scheduled to expire in July 2026, prompting the mandatory public tender.
How the Decision Was Made
Council staff evaluated the two tender applications against five strict criteria before making their recommendation. The key factors considered were:
- The proposed annual rent payable to the council.
- The strength and viability of the submitted business plan.
- Demonstrated capacity to strengthen the local economy.
- The qualifications and experience of proposed staff.
- Proven experience in successfully operating premises of similar size and complexity.
In the official business papers, council staff strongly endorsed The Grounds' proposal. The report stated that the offer "provides a commercial return to the community and aligns with Council's operational objectives for the property." This endorsement paved the way for the final vote by elected officials.
What This Means for Wollongong
The arrival of The Grounds of Alexandria represents a major coup for Wollongong's hospitality and tourism sector. The Sydney venue is not just a restaurant; it is an immersive experience known for its elaborate fit-outs, markets, and Instagrammable aesthetics, having topped international studies of social media popularity for restaurants.
This decision signals a potential transformation for the prime beachside location at North Wollongong. It promises to inject a well-known brand with a proven track record of drawing crowds into the local economy, potentially increasing visitor numbers to Stuart Park and the surrounding area. The council's focus on both commercial return and local economic benefit appears to have found a match in the ambitious plans put forward by the Sydney hospitality giant.
All eyes will now be on the transition period leading up to July 2026, as the details of The Grounds' vision for the Lagoon site are eagerly awaited by residents and food enthusiasts across the Illawarra.
