Dunedin mayor Sophie Barker says she is delighted as a major new hotel is confirmed for the central city. 

Distinction Hotels confirmed today that they would take over Philip Laing House and neighbouring buildings, at the corner of Princes and Rattray Sts, and transform it into a 4.5 star, 145-room hotel and conference centre, slated to open in 2028. 

Ms Barker said the announcement was “fantastic news”.

“At peak times Dunedin frequently hits near-100% occupancy. We have long needed additional rooms in the city to support our tourism industry.

“The addition of a new 4.5-star hotel significantly strengthens the city's accommodation offering and supports our continued growth as a year-round visitor destination."

The Distinction Hotel Group has history in the area, having previously transformed the historic Dunedin Chief Post Office into the luxury Distinction Dunedin Hotel, which opened its doors in 2015.

In 2021, the company also bought Dunedin Leisure Lodge on Duke St, near the Dunedin Botanic Gardens.

Distinction Hotel Group CEO Duncan Fletcher said he was confident making further investment in the city.

"Dunedin seems to be going ahead,” Mr Fletcher said. 

"There's healthy growth in Dunedin. There's lots of good things happening down there we see, both conference, corporate and international tourism, which is where we see some good growth."

The former Government Life Building, which recently housed Otago Regional Council and Oranga Tamariki offices, was purchased alongside neighbouring heritage buildings, which the mayor said was a drawcard for the city.

“The historic Princes Street buildings have beautiful façades that will be retained," Ms Barker said. 

“Our heritage architecture is a drawcard for many visitors, and this hotel will add to the city’s ability to enjoy our historic assets while delivering all the facilities and comforts expected of modern buildings.”

Dunedin currently has around 650 hotel rooms of four-star-and-above standard.

The city has experienced consistent growth in guest nights, with 851,000 guest nights recorded in Dunedin City in the year to March 2026, up 6.1% on the previous year.

This compares with growth of 5.7% across Otago and 4.2% nationally.