The New Zealand Defence Force has offered to repair Niue's only hotel, the Matavai Resort, after it was apparently damaged by NZDF staff.
A spokesperson for the NZDF says an employee or employees appears to have let off fire extinguishers in the hotel, damaging rooms and upsetting guests.
He says the staffers were on the island for a scoping study ahead of a major operation in the area later this year.
Earlier Niue police said they had considered wilful damage charges against one person but reached an agreement with the Defence Force that it would investigate the matter.
The NZDF says it is taking the matter seriously and its Military Police are now looking into it.
It has also apologised to the hotel and guests and is seeing what assistance it can offer in making repairs at the hotel.
Multi million dollar renovations at the hotel, paid for the New Zealand taxpayer, were only completed two years ago.