Why getting your premises licence right matters: a practical guide for hospitality operators

Whatever type of hospitality business you run, the Licensing Act 2003 sets out strict rules that need to be followed to regulate alcohol supply, entertainment and late-night service of food and drink. Getting this wrong can mean enforcement action (including criminal conviction), reputational harm or losing the ability to sell alcohol altogether.

Why licensing matters

The Licensing Act 2003 is built around four statutory objectives:

• preventing crime and disorder;
• ensuring public safety;
• preventing public nuisance; and
• protecting children from harm.

These objectives guide every part of the licensing framework and must be considered whenever a business applies for, varies or operates under a premises licence. We set out below some key considerations, common pitfalls and practical tips.

The premises licence: your foundation document

Almost all venues serving alcohol, hosting entertainment or providing late-night refreshment require a premises licence. The licence specifies the licensable activities permitted, the opening hours and the conditions an operator must meet. Applications require an operating schedule which explains how the premises will be run.

Once an application is made, there is a consultation period where responsible authorities (for example the police or local planning authority) as well as individuals can submit objections, or representations, that they wish to be considered prior to the grant of the licence.

Representations must be tied to the four statutory licensing objectives set out above and can lead to a hearing, additional conditions or rejection.

If no representations are raised, the licence is granted subject to certain mandatory conditions.

Venues should consider:

• The scope of activities: do you want flexibility for weddings, conferences, or seasonal events?
• Outdoor spaces: terraces, gardens and rooftop bars often attract public nuisance concerns.
• Staff training and supervision: key for promoting the licensing objectives.
• Noise management: essential for hotels located in mixed-use or residential areas.

Failing to reflect your true operating model in the application can cause issues later and may require a variation – another process with its own risks and fees.

The designated premises supervisor: the venue’s key player

If your venue sells alcohol, your premises licence must name a designated premises supervisor (DPS). This person must hold a personal licence and is the primary contact for the police and licensing authority. Without a valid DPS in place, the sale of alcohol cannot legally take place.

The DPS role is designed to ensure accountability. They are typically the person with day-to-day responsibility for the premises.

Hotels experience staff turnover, restructuring, and management changes – sometimes at short notice. However, you cannot simply move managers around without telling the licensing authority, which is the local authority for the area, usually the council.

Every council must follow the same legal process for appointing a new DPS (although the administrative procedure may differ). You must apply to vary the premises licence. This involves submitting an application form to the licencing authority, a consent form signed by the proposed DPS, notifying the existing DPS (if there is one), and notifying the police (who can object in exceptional circumstances).

Temporary event notices: a useful tool – but not a cure all

Special events – weddings, corporate launches, cocktail masterclasses – may fall outside your licence (for example, later hours or additional licensable activities). A temporary event notice (TEN) may solve the problem.

However, a TEN is not a substitute for a well-drafted premises licence. Beyond creating more paperwork, TENs are limited in both number and duration and allow licensable activities only for a maximum number of days per year. Hotels relying too heavily on TENs may find themselves under scrutiny during licence reviews.

Common pitfalls for hotels

• Forgetting to update the DPS: gaps or errors in the DPS appointment can halt alcohol sales entirely. Hotels with multiple outlets (restaurant, lounge, bar, room service) are especially vulnerable if responsibility is unclear.
• Operating beyond authorised hours or activities: this is a common reason for enforcement, often arising from private events or misunderstandings by staff. This can result in imprisonment for up to six months or an unlimited fine. Operating hours could also be restricted as a result of breach, in addition to conditions imposed on the premises to restrict its operation.
• Poor record keeping: training records, refusals logs and incident reports can be requested by authorities and help demonstrate compliance.
• Failing to manage noise and nuisance: outdoor seating, smoking areas and late-night arrivals/departures can generate complaints leading to a licence review.
• Assuming flexibility where none exists: the Licensing Act framework is prescriptive. Activities outside the scope of the licence – however minor they may seem – are offences.

Final thoughts: practical tips for staying compliant

1. Audit your licence annually.
2. Train staff thoroughly.
3. Keep a certified copy of the licence accessible.
4. Monitor local licensing policies.
5. Act early on any operational changes.

If you are unsure how your current licence aligns with your plans – or if you are navigating a DPS change – it is always worth seeking advice early. The hospitality sector moves fast, but licensing law (and sometimes the administrative process) does not, and being proactive is the best way to protect both your operations and your reputation.

Many thanks to Eloisa Clegg, current trainee in the team, for her help preparing this article.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, March 2026