Hotel finds favour

Guests have ranked The Dairy Private Luxury Hotel in Queenstown as one of the world's best small hotels.

It came in at fourth place behind Greek apartments, an adventure and dive resort in Belize and a South African lodge.

Trip Advisor is an online site which ranks accommodation, eateries and other travel-related necessities according to guests' feedback.

The Dairy Private Luxury Hotel co-owner Matt Diack said he was pleased with the result, which reflected hard work and effort. Come April 1, he and business partner Paul Cook will have owned the business for two years and he said it was ''fantastic'' to see the hard work paying off.

''We concentrate on service because we just think it's something that lacks in the bigger hotels.''

The hotel's owners were reaping the benefits of their successful model and this was reflected in continually strong bookings, Mr Diack said.

''This has been a phenomenal year, full stop.''

As well as receiving past Trip Advisor accolades, the hotel was runner-up in the 2012 New Zealand Travel Industry Awards for best hotel or resort in the country.

The hotel was formerly a corner store and retains the original wooden floorboards and entrance from the 1920s.

Also receiving a world ranking was the Hillsfield House Bed and Breakfast in Renwick - 10 minutes from Blenheim - which was placed 12th in the top 25 in the bed and breakfast category.