As featured in the latest edition of QHA Review Magazine
In the hospitality industry, it is critical to stay ahead of the curve for commercial success. One way of achieving this is expanding or renovating your hotel to update and adapt gaming rooms and other facilities to meet patron expectations and set the standard for your competitors. However, if not managed correctly, this process can present unforeseen challenges. To help you navigate this journey smoothly, here are some key considerations for your next project.
Council Approval/Town Planning
In most situations where you decide to undertake construction works to a property, you are required under the Planning Act 2016 to seek certification by the local council for the works. This is often achieved by simply obtaining a building approval, which involves having plans professionally drawn, lodged with the local council, and approved.
However, depending on the scope or where these works will significantly change or intensify the use of a property, you may also require town planning approval. This can pose several challenges, such as the local council requiring additional car parking spaces (which can prove problematic depending on the layout of your hotel), scrutiny on trading hours, or noise restrictions/limits.
Accordingly, it is critical to obtain appropriate town planning advice to avoid any unforeseen setbacks. As town planning approvals can take a substantial amount of time, it is important that you take these steps at the outset of your project.
OLGR Approval
For licensed premises like hotels, the Liquor Act 1992 requires licensees to obtain approval from the OLGR prior to commencing works unless the works do not materially alter the licensed premises (such as major renovations, rebuilding, altering of size of the licensed premises or modifying the acoustic qualities of the licensed premises), and the estimated costs of the works are less than $50,000.00.
If approval is required, you will need to lodge various supporting documents, including any planning or building approvals, layout plans showing the proposed changes, plans showing the existing and new licensed areas (if the licensed footprint will change as part of the renovation works), and an updated RAMP. Failure to obtain approval before commencing works may lead to compliance action. The approval process can often take longer than expected, so we always recommend that applications be lodged as early as possible in the process.
If the works relate to a gaming room and the gaming machines need to either be switched off or relocated as part of the expansion or renovation works, then specific approval needs to be obtained from the OLGR to relocate the gaming room, as well as approval to store the machines if they will be stored for more than two months. Your Licensed Monitoring Operator will also need to be notified.
The OLGR will conduct a final inspection once the work is completed to confirm the licensed area and determine any necessary conditions. Depending on the changes made, you may also need an acoustic report to determine new noise conditions.
Conclusion
Comprehensive planning is paramount to a successful expansion or renovation project. Therefore, Hoteliers should conduct appropriate due diligence, including the careful selection of consultants and builders, proper consideration of cash-flow costs and the overall business case that supports the decision.
If you require any assistance in relation to potential works at your hotel, please don’t hesitate to contact me on (07) 3224 0230.
