The destruction sparked a police response, and further investigation uncovered another property was damaged.
Sergeant Matt Lee, of Dunedin, said police were called to South Rd after a member of the public heard people shouting and lots of glass breaking, at about 4am on Saturday.
When police arrived, they discovered all the outer windows of the Carisbrook Hotel had been smashed.
The doors to both entrances were removed from their hinges and smashed.
Police located a property further down the street, that had hosted a youth party earlier in the night, and also had smashed windows.
A teenager at the party told police another youth, unknown to members of the party, had smashed their windows before moving on to the Carisbrook Hotel.
Inquiries were ongoing to identify the man, Sgt Lee said.