Iris Capital's application to allow trading at its Shaft Tavern in Elermore Vale to continue until 4am on weeknights and Saturday has been rejected by the Independent Liquor and Gaming Authority.
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ILGA chairperson Phillip Crawford said the authority was unsatisfied the changes would "not be detrimental to the well-being of the local community".
ILGA received around 13 submissions from local residents opposing or raising concerns about the application to extend the hotel's hours by 26 hours per week.
The Authority received a submission from Licensing Sergeant Trudi Cupples of the Newcastle City Police District, which noted 13 adverse events linked to the hotel between 2014 and 2018.
The Authority also considered crime statistics illustrating the suburb was a "hot spot" for domestic assault.
Iris Capital bought the Shaft Tavern in December.
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