The hotel had been in receivership until Otematata Investments Ltd bought the property and began redeveloping the site.
Then Mr Cowles bought 40% of the property from the developers - 10 rooms of the former hotel and the bar - and started a five-year plan he said would result in $1million being invested in the business.
Rebranding and improving the quality of the lodge and eatery would be the focus. The 10 rooms would be refurbished, and one had been completed so far.
A brand-new commercial kitchen, a new gaming room and toilets had opened.
Work would begin to overhaul the bar area and a bottle store would be created. A dining and function centre in a newly created loft overlooking the bar would open this year.
And a cafe and outdoor dining area would be established by year three of his plan.
''There have been some great operators in here
... but no-one has decided to do that big step of this: of redeveloping it and bringing it into what today's market needs. And I wouldn't even look at doing it unless these guys out the back were investing as well.''
The remainder of the 1960s-built complex has been rebranded Lakeside Apartments and more than 40 managed apartments are already being refurbished.
Marketing agent Jeremy Kelleher, of Savills, said the apartments were expected to open in three stages beginning in March. One-bedroom furnished apartments, starting from $135,000, were now on sale.
While the lodge had relied on the sale of alcohol in the past, food was already about 50% of his business and he expected its share to grow, Mr Cowles said.
''Already, for the last 10 days, we are turning away 60 to 70 and sometimes over 100 diners every single night,'' he said.
''If all of these [apartments] are full, with two people, we've got the possibility of 130 people every night. That transforms our business.''
At present, 50% of the traffic at the lodge was users of the Alps 2 Ocean Cycle Trail, and many in the Waitaki Valley were looking to capitalise on the trail's popularity, Mr Cowles said.
