The ACT Civil and Administrative Tribunal has found Knightsbridge Canberra has been operating in breach of it’s lease conditions, effectively operating at a hotel.

The tribunal has issued the owners with a controlled activity order, to stop the facility from operating as a de facto hotel.

The ruling overturns a decision made by the ACT planning authority which had originally cleared Knightsbridge of any breaches.

The decision is regarded as a victory for the Australian Hotels Association which originally made the complaint.