Pub owner Marvan Hotels has paid a price for its court gamble seeking later opening hours at the Hotel Delany.
The Newcastle Herald reported last week that the Sydney-based pub company had lost a legal bid to stay open until 2am after the Land and Environment Court sided with residents on noise and safety concerns.
Newcastle council partially approved the Delany's later-trading application in 2022, allowing the pub to stay open an hour later until 1am on Fridays and Saturdays on a year-long trial.
Marvan appealed against that decision, but the gamble backfired when the court effectively rejected the company's development application.
The council confirmed on Monday that the court ruling meant the 2022 approval was now "void" and the Delany's closing time would remain at midnight six days a week and 10pm on Sundays.
"This represents an excellent outcome for City of Newcastle and for the local community as residents will not be subject to adverse amenity and social impacts associated with extended trading hours of the hotel," a council spokesperson said.
LEC Commissioner Nicola Targett said in her ruling she was not satisfied the later trading would have "acceptable noise and amenity impacts" on houses "in close proximity".
She also accepted the council's argument that the hotel's plan to manage customer behaviour and shut down in stages was "overly complex, confusing and ultimately inadequate".
Cooks Hill Community Group spokesperson Glenn Burgess said on Monday that residents were pleased with the outcome and the court had agreed that 2am trading would have too great an impact on the neighbourhood.
"We've always lived with the pub shutting at midnight and dealt with that, but 2am was too far over the top," he said.
Marvan Hotels is headed by well known Sydney hotelier Marcus Levy.
