The spokesman declined to estimate what the mix-up had cost the hotel in lost alcohol sales but said the situation could have been worse if the enforced dry period had come during the busy corporate season.
"It's hard to quantify due to the time of year. Unlike standard bars or restaurants, hotel bars generally do softer trade in January because it's mainly families."
The council had issued the hotel a special licence for an upcoming wedding.
Auckland Council's alcohol licensing manager, Rob Abbott, said the hotel had received notification that its annual licence fee was due and this fee was received by the council.
It was also sent notification that a renewal application and fee for a further three-year licence was due and Rydges did not make an application for renewal.
"We have discussed this with Rydges' management and they understand the process and the reason why they cannot sell alcohol without a current licence," Mr Abbott said.
One hotel guest remarked online that he should have been told upon check-in that alcohol couldn't be sold in the hotel bar, rooms or restaurants.
Hotel management had since asked its front desk staff to mention the fact to every guest.