The 83-year-old, who established the city's Merivale restaurant and bar empire, passed away on Sunday night at his estate, the Vaucluse mansion The Hermitage, after being bed-ridden for a year with multiple myeloma.

The Hemmes family released a statement on Monday saying he was surrounded by his family at the time.

"I will miss him terribly," Hemmes' son and Merivale Group boss Justin Hemmes said.

The Merivale Group operate a number of inner-city eateries and drinking spots, including The Ivy, El Loco in Surry Hills, Manly's popular Papi Chulo and Coogee Pavilion. Merivale, named after the family's matriarch, is now worth a reported $500 million.

"John Hemmes embodied the rags to riches migrant dream, having built an empire that swept hospitality, fashion and property," Fairfax Media's Good Food reported after news broke of Hemmes' passing.

"Before Merivale's mega-complexes Establishment and Ivy opened, the city had been on the nose with upmarket diners and drinkers. The family brought Manhattan-like glamour to Sydney's downtown."

Hemmes, whose father was a Dutch doctor, spent World War II and the majority of his childhood in a Japanese concentration camp.

He then emigrated to New Zealand before meeting his future bride, Australian milliner Merivale, on board a cruise ship. The pair married in 1954 and created the House of Merivale, which they ran out of his in-laws' house in Sydney.

The family then ventured into hospitality where his son, Justin and daughter, Bettina, continue to shine for their vision and design skills respectively.

"Mr John" as he was affectionately known, is survived by his wife, son and daughter.

The Hemmes family will be hosting a public memorial for those that wish to pay their respects to "Mr John" at the Ivy Ballroom on Friday between 4-6pm.

"They have requested that instead of flowers, donations are made to the Royal Prince Alfred Hospital LALTHAM Fund, supporting blood disease research and patient care," a spokesperson said.