Over many years, buyers, sellers and those simply wanting to make enquiries, have asked many questions. First-time hotel owners would find this section most helpful. The most common questions have been listed below in order to assist you with any general enquiries you may have. These answers have been provided by people that have been in the Hotel Industry for many years offering a wealth of knowledge and experience to you.

Question 1 - What is a freehold property?
A freehold hotel or property is one in which legal ownership of a property gives the owner unconditional rights and absolute tenure of land or property, including the right to grant leases, take out mortgages and with the freedom to dispose of it at will.

Questions 2 - What is a leasehold property?
Leasehold properties are those that are bound or held by a lease or rental agreement. When pruchasing a leasehold hotel, the prospective buyer is purchasing the lease only, not the hotel property itself. In some cases, different areas of a hotel may be leased separately such as the bistro, motel rooms, entertainment venues etc however usually, a leasehold hotel includes the running of the hotel in its entirety.

Question 3 - What is a freehold investment property?
Where a property is already under a lease agreement, the building may be sold. The buyer purchases the building with the lease as part of the purchase agreement. The attached lease can not be terminated on sale or purchase of the property. It remained fixed to the property ensuring the leasee their term of that lease. The new owner receives any monies from the lease agreement on a pro rata system. In conclusion, the building belongs to the buyer, the lease does not.

Question 4 - What is an entitlement?
An entitlement refers to poker machines. With the introduction of the Gaming Machines Act 2001, hotels and registered clubs were issued with poker machine entitlements. Section 19 of the Act allows for these entitlements to be transferred between premises, ie. club to club and hotel to hotel. You may purchase entitlements as part of the purchase price however that is subject to the conditions of sale and should be oulined within the contract of sale. Entitlements may be sold separate to the sale of the business and also as an entity in itself.

Question 5 - What are the different licences?
Hotel Licence authorises the sale and supply of liquor, for consumption on and off the licensed premises and is subject to the following conditions:

• that it provides accommodation for any person
• that it provides breakfast for lodgers between 7.00 am and 9.00 am and
• that it provides dinner for lodgers between 6.00 pm and 8.00 PM

Hotel Restricted Licence authorises the sale and supply of liquor for consumption on the premises only (ie: no packaged liquor sales except to a lodger and only in such quantities that might reasonably be consumed by that lodger on that day). It is also subject to the following conditions:

• that it provides accommodation for any person
• that it provides breakfast for lodgers between 7.00 am and 9.00 am and
• that it provides dinner for lodgers between 6.00 PM and 8.00 PM

Tavern Licence authorises the sale and supply of liquor, for consumption on and off the licensed premises. There is no requirement for the holder of a tavern licence to provide accommodation or meals.

Nightclub Licence (Section 42 of Liquor Licensing Act 1988 (the Act)) authorises the holder of a nightclub licence to sell and supply liquor, for consumption on the premises only (ie: no packaged liquor) during the permitted trading hours. A nightclub licence is subject to the condition that liquor may only be sold ancillary to continuous live entertainment provided by one or more artists present in person performing there, or by way of recorded music presented personally by a person employed by the licensee to do so.

Liquor Store Licence (Section 47 of the Liquor Licensing Act 1988 (the Act)) authorises the holder of a Liquor Store Licence to sell and supply packaged liquor for consumption off the licensed premises, during the permitted trading hours.

Questions 6 - Can I transfer a licence?
When a licence is granted, it is granted to a specified person (the licensee) to allow that person to sell liquor at a specified place (the licensed premises). Once granted, only the approved licensee may operate under the licence, and it may be operated only at the approved licensed premises. Approval can be given by the Licensing Authority for another person to take over the licence. This is called a transfer of licence from the existing licensee to a new licensee.