|
|
|
|
Value of Hoteliers Licence October 2006 Since the right to operate gaming machine entitlements have been split from the hoteliers licence, the value of the licence has declined dramatically from slightly over $300,000 to some say as low as $25,000. This has also been caused by the introduction of the new Social Impact Assessment process for the approval of new venues. These can take two forms: SIA (A) - where a licence is transferred from within the neighbourhood, which for the Metro Area is within one kilometre or SIA (B) - where a licence is transferred from outside this neighborhood or where an application for a grant is made. This then leads to the question what is a hoteliers licence worth? This could be described in this way. If a SIA (B) is undertaken then the cost of the SIA (B) is in the vicinity of $50,000 - 60,000.00, plus legals, plus application fee of $6,600.00. The cost of the licence to transfer is one of question. An existing licence is not subject to a grant fee or annual fee, which is $2,500 plus $2,000 per annum respectively, so thus a value of $25,000 would be seen as fair. However if you were to purchase a neighborhood licence, in real terms this type of hoteliers licence should be valued at approximately $55,000 on the basis that a SIA (A) can be completed thus saving you the SIA (B) fees, plus the application fee to the Board is reduced from $6,600.00 to $550.00. In either case you would be subject to licensing legals and on that basis you should speak to your licensing legal representative. Bligh Williams |
|
Send mail to
bligh@jtw.com.au with
questions or comments about this web site.
|