"It's a bit of an entrapment if you ask me, but that's the law," Mr Kidd said.
He admitted he did not ask the teenagers for identification when serving them
"I just assumed they were old enough, it was just one night and they looked much older."
The duty manager's certificate has been suspended for four weeks.
The Authority noted that the hotel's licence had previously been suspended twice for failing purchase operations and the pub's manager had also previously been suspended.
Hastings District Council's community safety manager Phil Evans said that he was "disappointed" in the management of the hotel. He warned that under new liquor licensing legislation which comes into effect in December, any further offences of this nature could result in the cancellation of the hotel's licence and the manager's certificate.