I stayed 1 night in this hotel in March 2009 as part of a package tour of New Zealand and Australia, so cannot comment on the room cost but can make observations on the facilities etc and compare it to all the other 'same-standard' 3* or so hotels I stayed in.
The hotel is located on the main street in this small/quiet town. There is a limited choice of accommodation in the area and you should not expect too much as there are really used as quick stopovers rather than for long-term stays - I think it would be best to refer to this establishment as a motel rather than a hotel...
Overall the 'hotel' was OK, but as already hinted was missing quite a few of the expected room facilities. Although clean and presentable, the rooms are a bit tatty, quite small and close to neighbouring residential houses, meaning the surroundings are quite noisy and everyone can see into your room. My experience was worsened by being located directly above the heating/hot water boiler room which made my room similar to a small, noisy sauna ! The local emergency services appeared to be quite busy since the 'muster' siren sounded several times to make the noise intrusion even worse.
The bathroom wasn't, with just a shower cubicle and small basin area. There was no aircon (which would have been useful to counter the rising hot air from downstairs if nothing else !) nor safe-deposit box.
Rooms are external, adjacent to the vehicle parking, on 2 floors so the absence of a lift is not too disastrous.
The breakfast buffet was fine, with quite a wide choice of quality foodstuffs, but there was no eggs 'cook-to-order' section - something I like a lot. Along with the hotel, there are a few bars/restaurants within a minutes walk, but the large through-traffic of overnight residents makes it quite a competition to get dinner....
This was not somewhere I would have liked to have stayed for a long period, but for a 1-night stopover enroute from Christchurch to Queenstown it was OK.
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