Sale of hotels defended

Press, Volume CXIV, Issue 33582, 10 July 1974, Page 12

Sale of hotels defended

Hotel buying by brewery interests was defended yesterday by the president of the Canterbury branch of the Hotel Association of New Zealand (Mr A. F. G. McGregor).

“In all instances, the sales have been made willingly by our members, who have not been put under any pressure to sell,” Mr McGregor told the annual branch’s conference. “Because of rising costs and licensing requirements, many owners have been happy to take the opportunity to refinance or to sell their properties to companies,” he said. “The greater capital now required to finance improvements — in line with modem trends, and as demanded by licensing rules and interpretations — is more than many of our members can manage.” It should be borne in mind that, on many occasions, when a hotel or tavern had been bought by a company, it was only a very short time before the new owners had to lay out a consid-

erable amount of money to improve the premises. It was not usually appreciated that the improvements were made in the interests of the customers. “It should also be noted that the major hotel-owning companies are wholly owned and operated by New Zealand shareholders,” Mr McGregor said. “It is very difficult to understand critics who complain as if the companies were overseas combines.”