Mr Dragicevich said the new owner had "different ideas" for the site but would maintain the liquor licence and continue "some form of hospitality offering". It is understood the underground space will be used as a small bar.

The Flinders Hotel closed in January. Credit:Wolter Peeters

Licensee Ben Young, who joined the Exchange as a glassy 10 years ago, said the lockout had produced a "marked downturn" in revenue. But it was not the only factor behind the closure, he indicated. "Our owners got out of it because, for them, it was just time to move on," he said.

Several venues have shut their doors in recent weeks, with owners naming the lockout laws as the sole or major cause. In Darling Harbour, Latin restaurant and nightclub La Cita was placed into administration on June 25, and proprietor Abe Mafi told Fairfax Media he had taken a revenue hit of $10,000 a week. Liquidator Anthony Warner said the venue's books showed a "significant downturn" in profits, but he acknowledged the audit was incomplete and suspected underlying financial difficulties were also a factor.

In Kings Cross, the well-established nightclub Soho also shut its doors in June. Owner Andrew Lazarus blamed the lockout for the club's closure, but had previously spoken of a "major backlash" after his son Luke was convicted for raping a teenage girl in an alley adjacent to the venue.