The retail bottle shop was underperforming despite its prime main street location and access.
The Bate plan was to completely demolish the bottle shop, add glazed doors that open on to the street, introduce a slab stone bar with European beer dispensing equipment and commission a classy cocktail station known as The Rue Bar.
The renovation introduced new appeal to the Hotel and brought strong revenue growth.
It was also an Australian Hotels Association Award winner as the Best Cocktail Bar of the Year.
The Ivanhoe Hotelâ€™s new owners want to develop more of the venue considering the success of the cocktail bar.