SilverOaks Hotel Geyserland in Rotorua has been served a Dangerous Building Notice due to subsidence beneath the hotel and will have to shut its doors effective immediately.
A Rotorua Lakes Council media spokeswoman said the hotel, on Fenton St near Whakarewarewa thermal village and Te Puia, was comprised of two buildings on a site which featured geothermal activity.
"One of the buildings has been closed since late November 2017 when the council served a Dangerous Building Notice after being notified about subsidence occurring beneath the building.
"Following further engineering and geotechnical investigations council has also served a Dangerous Building Notice on the second building, which will require it to also be closed."
She said a portion of the second building was in close proximity to the area where subsidence was occurring.
"The decision to also issue a Dangerous Building Notice on this building was made due to safety risks posed by isolating that part close to the subsidence, as this would close off key safety features including exits required in the event of a fire or some other emergency."
She said the safety of building occupants and users was the council's key priority in any decision to issue a Dangerous Building Notice.
"These notices take immediate effect and are for an indefinite period of time".
Experts were monitoring the situation and further geotechnical investigation would be required to better understand the extent of the issue, she said.
A staff member at the SilverOaks Hotel Geyserland did not wish to comment and referred the Rotorua Daily Post to the council.
Owned by the SilverOaks Group the SilverOaks Hotel Geyserland is one of its five hotels around the country.
It is a 100 per cent New Zealand owned and operated hotel and motor inn chain.