Iconic Ruapehu hotel the Grand Chateau Tongariro has confirmed it will be closing for good in a move Ruapehu Mayor Weston Kirton​ says has left him 'reeling”.

The hotel will officially shut its doors from February 5, having not been taking any new bookings for this year.

The hotel has been in consultation with the Department of Conservation (DoC) regarding the renewal of its 30-year lease, which expired in April 2020.

There were plans to extensively renovate the building and surrounding infrastructure, however, a seismic assessment found underground shifts over time meant some of the hotel infrastructure no longer meets safety standard.

'To ensure the safety of everyone at the hotel the decision was made to close the property,” a statement issued by a PR company for the hotel says.

However, the decision had also been influenced by other factors, including the significant cost of ensuring long-term site safety from seismic risk, and the uncertainty around the future of the Ruapehu ski fields.

Kirton the permanent closure 'comes as a bombshell to us”.

He says they were aware of the fact the hotel had earlier announced it would not take new bookings for this or next year, but news of a permanent closure left him feeling 'gutted”.

'We're certainly reeling about the closure,” Kirton says.

He says he was concerned about the knock-on effect the closure would have on the region's wider tourism economy, and for the 36 staff affected.

He says the hotel has a proud history and 'people from not only New Zealand but around the world visited”.

He says council would be working with the Ministry of Social Development in relation to the staff.

He also says that while he was not able to comment specifically on seismic risk issues, 'that hasn't been a concern from council”.

Kevin Peeris, senior vice-president commercial of the Chateau Tongariro Hotel's parent company, says it was a 'very sad day” for the hotel group.

'Bayview International Hotels and Resorts has destinations in Asia, Australia and New Zealand and without a doubt Chateau Tongariro Hotel is a flagship hotel and has been an iconic destination for international and local visitors.”

'Our attention is now focused on ensuring a smooth transition for our guests, staff and partners, and we are committed to supporting them through the closure.”

The chateau was built in 1929, and is listed by Heritage New Zealand as a Category 1 historic place.

- Benn Bathgate/Stuff.