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The 100% New Zealand owned and operated Distinction Hotels Group continues to expand, with the announcement that owner Geoff Thomson has purchased Philip Laing House on Dunedin’s Rattray Street and adjoining properties. The former Government Life Building will be transformed into an elegant 4.5-star, 145-room hotel and conference centre, slated to open in the final quarter of 2028.
The Group previously invested many years transforming the historic Dunedin Chief Post Office into the luxury Distinction Dunedin Hotel, which has been consistently recognised as one of New Zealand’s premier hotels, since opening its doors in 2015.
In 2021 Distinction bolstered its portfolio within the city, acquiring the Dunedin Leisure Lodge located on Duke St, neighbouring the Dunedin Botanic Garden.
The new Distinction Central Dunedin Hotel & Conference Centre will be the group’s 3rd property within Dunedin and 17th within New Zealand operating under the brand. Amenities that have become synonymous with those highly rated at Distinction Dunedin Hotel, such as luxury cloud-like beds, sleek ensuite bathrooms outfitted with spacious walk-in showers featuring both standard and rain shower heads and washer/dryers will feature in all of Distinction Central’s guestrooms and suites. In addition, the new hotel will also offer conference facilities catering for up to 300 delegates, as well as on-site parking.
Distinction Hotels Group ceo, Duncan Fletcher says that Distinction is not shying away from diving straight into another challenge, despite only completing their last luxury hotel construction in Geoff’s hometown of Invercargill less than a year ago.
Duncan said “We are excited to be in a position to make another positive contribution to the Dunedin and wider Otago and Southland economies. Our Distinction Dunedin team have done an outstanding job of delivering an international level of quality accommodation and hospitality to guests over the past decade. With demand now often exceeding the supply of rooms available for guests seeking a higher-level experience in the city, the time is right to deliver another high-end hotel and to also further develop the region’s conference business”.
Mayor of Dunedin Sophie Barker says she’s delighted at news of the development.
“At peak times Dunedin frequently hits near-100% occupancy. We have long needed additional rooms in the city to support our tourism industry, and this is fantastic news.
“The addition of a new 4.5-star hotel significantly strengthens the city’s accommodation offering and supports our continued growth as a year-round visitor destination.
“The historic Princes Street buildings have beautiful façades that will be retained. Our heritage architecture is a drawcard for many visitors, and this hotel will add to the city’s ability to enjoy our historic assets while delivering all the facilities and comforts expected of modern buildings.
“This announcement shows a strong vote of confidence in Dunedin and reflects growing confidence and interest in the city’s tourism, events, and business sectors.”
Dunedin currently has around 650 hotel rooms of four-star-and-above standard. The city has experienced consistent growth in guest nights, with 851,000 guest nights recorded in Dunedin City in the year to March 2026, up 6.1% on the previous year. This compares favourably with growth of 5.7% across Otago and 4.2% nationally.
