Johnny Shea, who owned it from 1999 until 2010, said the hotel was where the community gathered and was a central focus for Hawea.
He said it was a shame the historic building was destined to be rubble, and he believed the present owner and property developer Matt Laming was not thinking of the community.
"It is not about the community any more, it is about the mighty dollar," Mr Shea said.
"After 100 years, the whole purpose and memories that the Hawea Hotel has given people is basically going to be a thing of the past and just going to turn to dust.
"I think it is a travesty if there is not going to be another hospitality venue on that site."
Quartz Development Group plans to replace it with a new hotel and commercial precinct just down the road on Capell Ave.
"I don’t care if it is the pub that is there now or not, but there needs to be a bar on that site because of the 100 years of memories that people have had and to have grown up with, which you can’t replace," Mr Shea said.
Quartz Development Group managing director Mr Laming announced last year he had plans to knock down the existing building, saying it was "no longer fit for purpose".
New plans would include a hotel, visitor accommodation, private residences, hospitality, retail and entertainment sites as well as a premium, 20-lot lakefront subdivision.
When asked about a timeline for the plans, Mr Laming said
"we have no idea, it is ages away.
"Everyone knows the pub is going though.
"Honestly we don’t know, there is so much to work through in terms of consenting and planning."
When asked if he was sentimental about the community establishment turning 100 he said, "it’s a business".
However, Mr Laming was keen to celebrate the milestone with locals, such as with the family of original owner Claude Capell as well as Mr Shea and other past owners.
Mr Capell had moved from Balclutha where he ran a cheese factory, to then open a fishing lodge at Lake Hawea called the Lake House, which was the town’s first building. In 1925, he opened the lodge for business and before 1950 he ran the hotel as a guest lodge.
The hotel did not get a liquor licence until 1952 when crews arrived to build the dam.
Mr Capell and the hotel hosted Prince Albert, Duke of York (later King George VI) in 1927, during a royal visit to New Zealand.
In the 1950s, son Tim Capell took over the hotel, redeveloped it and renamed it Hotel Capell.
Mr Shea said in the 12 years he owned it the place was used for many live music events.
"We are probably the last period where it was a country hotel and so, of course, we were very community orientated. The community evolved around the hotel through that era.
"It was fantastic. However, it is a living beast and it’ll take as much as you give it and, to be fair, we were probably there a few years too long as you do run out of puff after a wee while."
He recalls the global financial crisis in 2008 being the toughest period for the business.
"Anyone who has lived here for a long time is disappointed but anyone who has just turned up and calls Hawea home, they probably don’t give a monkey’s a... about it, it is just a building."
Mr Shea said memories would stand the test of time.
"We have lived here and put so much into it, the community has put so much into it, there are so many relationships born, there are weddings that have gone on there and so many memories to not have it."
