Royal Hotel serves its last orders

MARTIN DE RUYTER/Nelson Mail

NO MONEY: The Royal Hotel at the corner of Bridge and Collingwood Streets has closed.

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Nelson's Royal Hotel has closed, with the publicans saying increasing costs make it tough running a pub.

Paul Brydon, who part-owned the pub with Steve Humphries, said increased rates and power costs, changes to pokie machine income, and liquor law relaxation allowing cheap alcohol sales in supermarkets had "ruined the hotel game".

Trade at the Bridge St pub had been dead, said Mr Brydon. The Royal has backpacker accommodation which in previous years had provided a good income but last summer it had been full for only about a week, he said.

Its lease had run out in March and since then it had traded month to month but in the end could not pay the bills, and the Wellington landlord had evicted them.

The rent had doubled about four years ago and they had not had the money to spend on the business, he said.

Mr Brydon owns Mollys Sports Bar and Club across the road from the Royal which he said was running successfully as it was a party bar for younger customers.

It opens 20 hours a week from Wednesday to Saturday nights, and its power bill had risen from $500 to $1400 a month in three years.

The power bill at the Royal was more than $2000 a month and he slated power prices.

The Royal had employed a cleaner and two bar staff.

Mr Brydon's partner Sasha Kerslake, who worked there, said she blamed Nelson City Council the most, saying it did not give any leeway on its rates and water bill which came to $400 a week.

Mr Brydon said the Government's GST increase due to come into effect next month was just another cost making it unprofitable to run a business.

While the Government's proposed liquor law reforms showed it was being proactive, the changes came too late.

Ms Kerslake said the Royal had been a Nelson landmark and institution. "For us to lose it is pretty gutwrenching."

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