Lake Macquarie Police are investigating a break in at the Iron Horse Inn at Cardiff.
Police were alerted to the Inn at 10.50pm last night.
Senior Constable Juan Mahoney said the Inn had also been broken into the night before
"On arrival police found that the rear door of the location had been forced open and a police dog unit completed a search of the location," he said.
Across the road from the Inn police arrested a man who they later released awaiting further inquiries.
Police are now investigating both break and enters on the hotel.