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Residents of Burswood maintained that the construction of the new hotel violated planning permissions. They argued that this was the case because it was not subject to the planning and development processes the city council.

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According to a report in the Sydney Morning Herald, many pubs have failed in recent years, as they were located in areas that did not suit their offerings. The neighbourhoods in which the Welcome Hotel and Australian Youth Hotel are located are full of individuals looking to indulge in high-quality food and have an entertaining night out – rather than simply playing pokies.

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