The SMH online reported to day that one of Sydney’s most prominent hotel groups is facing receievership thanks to Nathan Rees harsh 2am Lockout measures.

According to SHM, Tony Woodward, part-owner of the Vegas Hotel and the Mansions Hotel in Kings Cross, the Oxford in Darlinghurst and the Peakhurst Inn, states his revenues had fallen by “up to half” since the 2am lockout was introduced in December 2008. 

All four of these venues are well known late-night watering holes due to their 24-hour licenses.

Mr. Woodward claims that the period of  ”2am to 6am was very buoyant. It’s [the lockout] made a huge impact on business and they [the hotels] won’t survive unless they lift the ban.”

SMH points out that straightened financial circumstances of these four hotels highlights the dire state of the NSW pub industry and that so far the victims of the crisis have tended to be small hotels with low turnover. Mr Woodward’s hotels, however, are regarded as ‘premium’ establishments due to their turnover being in excess of  more than $100,000 a week from drinking and gambling.

The Vegas Hotel, in fact, was the state’s number one poker machine venue in 2006, but it has fallen to 35th in the most recent rankings.

BankWest, is reportedly owed $90 million on the venues and has taken charge of the hotels and appointed a receiver, Peter Walker, from the insolvency firm Ferrier Hodgson.

A pub consultant, Paddy Coglan from the Riversdale Group, spoke to SHM and said that the banks were now prepared to place ‘premium’ hotels in receivership.

“In the past they had been holding off on the larger players in the industry with large amounts of debt,” he said.