I stayed one night in Mount Richmond on my (cycling) way from Picton to Nelson. Their website said they offered backpackers dorm accomodation but once I got there, it turned out they were redoing the whole place as self contained chalet-type accomodation.
I couldn't afford a whole self-contained room to myself but they were kind enough to meet me halfway to backpacker prices. It was nice to have my own kitchen, even if basic, but the bathroom was outside - across the hall as it were, but still outside which isn't pleasant in the middle of the night!
On the plus side, because they were redoing the whole thing, I was literally the only traveller - I had the outdoors hot tub to myself!
Beware of sandflies in that part, I didn't get any in Picton or Nelson but definitely plenty in Rai Valley.
All in all this is probably a good spot for a family on a bit of a vacation but not really a backpackers stop.
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