12 May 2010

Dunedin's former Post Office to become hotel

12:50 pm on 12 May 2010

An Invercargill hotel developer has bought Dunedin's historic former Chief Post Office building and plans to convert it into a four-star hotel.

Distinction Hotels owner Geoffrey Thompson, who has bought the nine-storey building from South Canterbury Finance, hopes to open the hotel before the Rugby World Cup starts next year.

The purchase has scuppered an idea being considered by the Dunedin City Council to move the central public library into the building.

Dunedin mayor Peter Chin says he's disappointed the council's library plans have come to nothing, but believes the hotel development will be good for the city.