The Kaikorai Valley Rd facility — once touted to help solve the city’s homelessness issues — was sold earlier this year to Hireworx managing director Adam Stewart and former Ritchies Buses director Andrew Ritchie.
The duo aim to bring it back to life as Stayhub Holiday Park Dunedin.
Four years ago, Aaron Lodge was bought by Kāinga Ora for more than $4 million, after being used as a supported isolation and quarantine (SIQ) facility during the Covid-19 pandemic.
Since then, it had remained empty, leaving the public wondering about its future.
Kāinga Ora regional director for Otago, Southland and South Canterbury Kerrie Young said several development options and layout plans were explored for the site, but changing market conditions and rising construction costs meant the social housing project was no longer financially viable.
He said it would eventually become "New Zealand’s most tech-advanced holiday park".
Plans for the facility included refurbishing the cabins, creating luxury self-contained units, "futuristic space capsule" luxury cabins with private hot tubs, powered sites, tenting areas, a refreshed pool and games room, plus new attractions such as a gaming arcade, theatre, and even a 10-pin bowling lane.
He said there would be plenty of spaces for children to make friends while parents relaxed.
"This park has been purchased as a long-term investment and passion project, with the aim of creating something Dunedin can be proud of again."
He said too many holiday camps in New Zealand were "run down and outdated" and this project provided a chance to "reinvent" the holiday park sector.
"They want clean, fun spaces and experiences worth sharing on social media.
"Think barbecues, a Speight’s in hand, a Tip Top ice cream for the kids, and Billy T in his singlet cracking a joke by the fire pit — that’s the Kiwi spirit we’re keeping alive.
"That’s what Stayhub is all about," Mr Stewart said.
He declined to say how much was paid for the site, or how much was being spent on the redevelopment, other than it was a "multimillion-dollar project".
The goal was for the holiday park to reopen next year, he said.
