Patrons at a Newcastle hotel have been terrorised by three men armed with machetes in an early morning robbery.
The Mary Ellen Hotel at Merewether was still trading when the men stormed in at about 12:30am (AEDT), waiving the machetes and threatening 12 patrons and bar staff.
One patron refused to get on the floor and was hit on the arm with a machete, receiving a small graze.
The patron was then hit on the back of the neck and was knocked to the ground.
The other patrons retaliated and started throwing objects, such as beer glasses, at the armed man.
One of the other armed men lead the manager to a back office demanding money.
With cash in hand, the trio left the hotel through a door onto Railway Street, and fled down Llewellyn Street.
Anyone with information is urged to contact police.
