Government in talks around restoring derelict Chateau Tongariro, demolition still an option

The Government has said Chateau Tongariro requires "considerable investment" to make it fit to be used as a hotel. Photo / Alan Gibson

The Government is considering steps to do up Chateau Tongariro, whilst confirming demolition remains an option on the table.

A response to a petition from Ruapehu Mayor Weston Kirton, calling for assistance to “save” the derelict Chateau Tongariro, has been published by the Government.

It states the Minister of Conservation, Tama Potaka, has directed the Department of Conservation (DoC) to engage with interested commercial parties and iwi around “the terms for restoration and operation of the Chateau as a hotel once again”.

“We have committed to a transparent, time-bound process. The Department of Conservation is engaging with Iwi and investors‚” said the response, published on Parliament’s website.

It added that Potaka intends to seek requests for proposals from parties to fund the strengthening and restoration of the Chateau as a hotel early this year, with responses to identify if it is commercially viable to do so.

Responses to the request will then be evaluated.

The Government has issued its formal response to the petition.

Chateau Tongariro has been empty since the lease on the heritage-listed site ended in early 2023. Before that, it had been used as accommodation for people visiting the Mt Ruapehu skifields.

The response to the petition reiterates that the building requires “considerable investment”, including earthquake strengthening and restoration, to make it fit for use as a hotel again.

DoC has been securing the building since the lease came to an end, which the response said was a “significant annual cost”.

It is estimated that annual cost is about $2 million.

Budget 2025 deemed the Chateau a “fiscal risk”, with demolition on the table, an option that remains to this day.

In late 2025, it was reported Treasury removed the cost of restoring the hotel from its list of “significant risks” to the Crown’s finances.

In the petition, Kirton stated there was a “strong desire” from the community to see the “iconic building” brought back to life.

“By imploring the Government to act with urgency to save the Chateau, we seek to preserve a treasured piece of our cultural heritage along with the economic prosperity and tourism excellence that it represents,” he said in the plea.

He implored the Government to consider the economic benefits of restoration, saying the Chateau had employed more than 70 staff and attracted “high-spending tourists” when it was open.

The Government concluded its response by stating it has still not taken any options off the table, including demolition, decommissioning, or restoration via a private operator.

Azaria Howell is a multimedia reporter working from Parliament’s press gallery. She joined NZME in 2022 and became a Newstalk ZB political reporter in late 2024, with a keen interest in public service agency reform and government spending.