The decision not to renew the alcohol license of the Castlepoint Hotel has been met with a strong reaction from the community.
Masterton District Council Chief Executive Kym Fell has expressed disappointment at some community reaction to the recent lifting of the Castlepoint Hotel's alcohol licence stay.
"We understand the Castlepoint Hotel holds a special place in the community, but we're concerned that some of the frustration has been misdirected," Fell said.
Following a hearing at Alcohol Regulatory and Licensing Authority (ARLA) on 4 February The hotel's ability to sell alcohol was removed by the ARLA on 9 February 2026, following breaches of conditions that the venue operators themselves agreed to in December 2025.
However, the venue can still operate as a venue for food, non-alcoholic drinks, and accommodation.
"This decision was made by ARLA, an independent body chaired by a District Court Judge. Council staff simply fulfilled their statutory obligation to report concerns about public safety," Fell said.
"Our Licensing Inspector was doing exactly what the law requires. When evidence presented to us showed the venue was breaching agreed conditions, including allowing intoxicated patrons to remain on site, the Inspector had a legal duty to act. The Sale and Supply of Alcohol Act 2012 exists to ensure alcohol is sold and supplied safely and responsibly. "
Alcohol licensing is a key tool to support communities with harm prevention from alcohol consumption, and reducing anti-social behaviour, supporting public safety.
"If an intoxicated person had left the hotel, driven, and killed or injured someone, and it became known we'd been aware of issues and failed to act, Council would rightly be condemned in the court of public opinion. In the same way, if an intoxicated person left the venue and ended up injured, venues are required to act responsibly to ensure the safety of their patrons.”
He said that it was understood that the decision was frustrating, but the Council would always choose public safety.
Fell highlighted that the venue's licences were not renewed due to management practices, not because Council staff or ARLA failed in their duties.
"We encourage anyone who wants to understand the full picture to read the hearing decisions, which are publicly available on our website.”
ARLA will hear the venue's appeal against the original licence refusal on 25 February 2026.
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