Palace Cinemas Announces Paddington's Beloved Chauvel Cinema Is Closing for Much-Needed Renovations
One of Sydney's oldest cinemas is getting some much needed work done, with Palace Cinemas 20 year lease coming to an end this January.
Theatres are already having a tough go of it in 2026, but this news twists the knife a little bit for Sydney's theatregoing community. Palace Cinemas has announced that after two decades of managing Paddington's historic Chauvel Cinema, the lease has concluded and the cinema will close for long-term renovations on Tuesday, January 27, as many predicted would both be inevitable and necessary.
Said renovations, undertaken by the City of Sydney, are for the building as a whole, not just the cinema space, and while Sydney's inner east is losing a gem, the Palace team insists that this is a good thing.

"The Chauvel has always been a meeting place for ideas, culture and community," said Palace Cinemas CEO Benjamin Zeccola. "While the lease conclusion and upcoming redevelopment of Paddington Town Hall mean we must say goodbye to this space, we do so with enormous pride in what the Chauvel represented and gratitude to the audiences who gave it life."
Chauvel Cinema first opened in 1977, and Palace took over ownership of the space in 2006, one of three cinemas the independent chain owned and operated on Oxford Street. According to the Sydney Morning Herald, the cinema was beginning to deteriorate to the point of swaying public opinions, which led to poor box office returns. Pair that with an ever-increasing cost of renovations (renovations that were first proposed back in 2015) and the building's fate was sealed.
Palace may have left its Oxford Street territory behind, but Zeccola insists this isn't the end to their commitment to arthouse cinema in Sydney. "This is a farewell to a venue not to an ethos. Over the years, we put forward numerous proposals to address the ageing condition of the Chauvel and Paddington Town Hall and to invest in its future, but the constraints of leasing a public building meant that vision could not obtain council approval."
"Nonetheless, the spirit of the Chauvel, its love of international cinema, festivals, and curating places for communities to share incredible experiences will continue at Palace Moore Park, and our other Sydney venues, Palace Central and Palace Norton Street."

Palace Moore Park
Since opening in 2024, Palace Cinemas' Moore Park location has become the brand's flagship venue, combining cinema with the packed food and drink offering of the Entertainment Quarter.
"Palace Moore Park allows us to honour the Chauvel's legacy while offering audiences a more accessible and comfortable experience," Zeccola said. "With four screens it gives us a place to celebrate cinema and share it with more people, the space to present more festivals, immersive events, and a broader range of films, all while maintaining the careful curation and hospitality our patrons expect."
Chauvel Cinema Paddington will close on Tuesday, January 27. For more information on Palace Cinemas and its other locations in Sydney, visit the website.
Images courtesy of Palace Cinemas