We stayed here for 3 nights in Jan 2012 as it was in our budget but compared to places we had stayed previously in NZ, it was not as good value for money.
We had a budget room with a double and single bed, ensuite and a TV and fridge - and absolutely no room to swing a cat, let alone open your bags. The hotel was clean but dated (think 1970's) and with the long corridors with doors either side, felt like something out "The Shining". We picked it on advice of iSite in Christchurch because of price, availability and kitchen facilities. The latter, whilst it had a stunning view of the mountains, was very poorly equipped and I think suffered from guests removing cutlery (there were plenty of knives on our first night, but only 1 by the last night).
On the plus side, the guest laundry was very good.
If I did it all again, I would look to stay closer to the town centre / waterfront and pay extra if I had to (it was a 15 minute walk to the main shopping/restaurant area of Te Anau).
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC