Originally built as a substantial private residence, the Towey St property provides luxury accommodation.
Roy and Bernice Vannini bought Pen-y-bryn, which has a category one Historic Places Trust classification, in 1997. It is believed to be the largest all-timber single-storeyed house in New Zealand.
In 2001, Mr and Mrs Vannini won the premier award in the inaugural Whitestone Waitaki Tourism Awards. The lodge has been named in National Business Review's top 100 houses in the country.
The couple had enjoyed their time at Pen-y-bryn - "we wouldn't have swapped it for the world" - but were ready for a change, Mrs Vannini said.
They moved to Oamaru from Auckland and were only the fourth family to own the home since 1889. They had met some "amazing people" and made good friends from all over the world.
While they thought it was a bad time to sell, given the world financial markets, people were wanting to invest their money in something "solid and safe" and there had been overseas interest, Mrs Vannini said.
The house had worked very well as a family home for more than 100 years and it could be a private home again if the new owner did not want to run a lodge, Mr Vannini said.
The couple have been deeply involved with the New Zealand Lodge Association, which represents luxury lodges and sporting retreats including Huka Lodge, Kauri Cliffs and Blanket Bay. Mr Vannini has served as chairman, while Mrs Vannini is secretary-treasurer.
Both have been involved with tourism in the Waitaki district, and it was pleasing to see tourism "going ahead" in the district with operators who were serious about it, Mr Vannini said.
"It's really a question of maintaining that impetus we've got and carrying it forward."
Mr and Mrs Vannini had no immediate plans for the future and would not decide until they sold.
Pen-y-bryn Lodge is advertised for sale at $1.65 million.
