The closure of the Chauvel Cinema marks a significant moment for the Oxford Street entertainment landscape. After more than four decades as a cherished arthouse venue, the Chauvel will shut its doors following its final screening of Parasite on the evening of January 29, 2026. This decision comes as the last of three Palace cinemas in the area, further diminishing a once-thriving cultural hub.
Palace Cinemas, which has operated the Chauvel since 2006, has struggled with financial viability since reopening post-COVID. The cinema’s lease in the historic Paddington Town Hall will expire in March, prompting this closure. According to Benjamin Zeccola, chief executive of Palace Cinemas, the Chauvel had not been able to break even for some time. He initially considered closing it in late 2024, but a temporary rent reduction from the City of Sydney allowed it to continue operating for a while longer.
“It’s disappointing,” Zeccola stated regarding the closure. “But my disappointment is reduced a little by a sense of relief that we’re no longer responsible for maintaining something that’s not really working.” This sentiment reflects a broader trend of diminishing patronage, with audiences increasingly opting for venues that offer improved amenities. Zeccola noted that customers have expressed a clear preference for more comfortable cinema experiences.
The council has long planned a restoration of the Paddington Town Hall, but delays have prevented the Chauvel from benefiting from any renovations. The cinema has hosted memorable events, including French and Italian film festivals, which highlighted its significance in Sydney’s film culture. “You could feel in the bones of the building an incredible history of cinema in Sydney,” Zeccola added.
Historically, the Chauvel has been a cornerstone for arthouse films, alongside its sister venues, the Academy Twin and the Verona, both of which have closed in recent years. The Academy Twin ceased operations in 2010 due to a rental dispute, and the Verona was sold for redevelopment in 2024. Following the Verona’s closure, Palace shifted its arthouse programming to the Palace Moore Park, a former Hoyts cinema.
The impending closure of the Chauvel has not gone unnoticed by local officials. Clover Moore, the Lord Mayor of Sydney, previously referred to the cinema as “a much-loved institution” and emphasized the City of Sydney’s commitment to revitalizing Oxford Street, which includes significant building refurbishment.
Despite the loss of the Chauvel, the future of cinema on Oxford Street may hold promise. Following the Town Hall’s refurbishment, the council is expected to seek tenders for a new operator to run the cinema. Zeccola expressed interest in returning, and at least one other cinema operator has reportedly shown interest in the opportunity.
In a related development, Barrie Barton, chief executive of the Golden Age Cinema and Bar in Surry Hills, announced plans to expand with new cinemas as part of the redevelopment of the Verona site. Barton noted that the designs are still being finalized, but the project aims to include two cinemas and multipurpose auditoriums suitable for various events, including films and live performances. “We’re trying to work towards a similar layering of different experiences that collectively make it worth getting off your couch and shutting your Netflix down for an evening,” he remarked.
Additionally, the Art Gallery of NSW has indicated plans to introduce its own cinematheque in the coming month, which could further enrich Sydney’s cinematic offerings.
As the Chauvel Cinema prepares for its last screening, its closure underscores the ongoing challenges facing traditional arthouse cinemas amid changing audience preferences and the impact of recent global events.
