Trail Business: Oturehua Railway Hotel
- Thursday Apr 9 2026
The Heart of Hospitality: Liz and Grahame’s Journey at the Oturehua Railway Hotel
In the heart of Central Otago, nestled along the famous Otago Central Rail Trail, stands the Oturehua Railway Hotel—a historic establishment infused with warmth, character, and a deep sense of community. For the past 17 years, Liz and Grahame Jones have been at the helm, transforming the hotel into more than just a stopover; they’ve created a welcoming haven for weary travellers and locals alike.
A Lifestyle Change Turned Passion Project
Liz and Grahame’s journey to Oturehua began as a quest for something different. After years of running a successful warehouse and logistics business in Christchurch, they found themselves seeking a new challenge. Avid travellers themselves, they had cycled the Rail Trail multiple times before fate led them to the Oturehua Railway Hotel.
“When we first visited, the place was run down,” Grahame recalls. “Feet stuck to the carpet, no garden—just a couple of plastic tables on the shingle.” But where others saw a tired old pub, they saw potential. What started as a five-year plan turned into a 17-year labour of love, shaping the hotel into the vibrant and welcoming space it is today.
A Hub for the Rail Trail Community
As one of the key stops along the Rail Trail, the hotel has become a favourite for cyclists and travellers in search of a hearty meal and good company. However, the growing popularity of the trail comes with its challenges. “We used to be able to cook for everyone who walked through the door,” Grahame says, “but now we have so many people coming in hungry, we needed an alternative.” Their solution? Stocking up on Cromwell’s famous Sanger’s pies—quick, delicious, and perfect for riders needing a carb and protein boost before continuing their journey.
Despite the demands of the business, Liz and Grahame have always maintained a strong sense of collaboration with other local businesses. “We don’t open until 12, which gives places like Hayes and Gilchrist’s Store a chance to serve morning teas and coffees,” Grahame explains. This cooperative approach ensures a thriving community where multiple businesses can benefit from the trail’s traffic.
More Than a Pub—A Place for Everyone
For Liz and Grahame, the hotel has never just been about pouring pints; it’s about creating a space that feels like home. They’ve put in countless hours making improvements, from renovating the kitchen to adding a playground for visiting families. “If the kids are happy, Mum and Dad are happy,” Liz notes. “It makes for a better experience for everyone.”
Their philosophy extends to the locals as well. “This pub is their lounge,” Grahame says. “They usually start work early, come in for a drink, and by quarter to seven, they’re gone.” Unlike city pubs, where managing late-night crowds can be a challenge, the Railway Hotel attracts a relaxed, friendly clientele—many of whom are retirees cycling the trail.
A Crucial Link Under Threat
After several years of having the business on the market, Liz and Grahame have made the difficult decision to close the Oturehua Railway Hotel if no buyer is found by June 1. Rather than continuing indefinitely, the couple have chosen to step away if a new owner doesn’t come forward.
As recently reported in the Otago Daily Times, Otago Central Rail Trail Trust chairwoman Kate Wilson described the hotel as “a crucial link” for the cycle trails that pass through Oturehua—and a rare opportunity for anyone dreaming of a Central Otago lifestyle.
“Too few young people see it as an opportunity of getting in there and having a business that’s affordable and accessible for young people,” she said.
“And I think that’s where we need to be looking strategically—this isn’t just a retirees’ lifestyle. This is an absolutely awesome lifestyle for young people, even with families.”
The potential closure would leave a significant gap along the Rail Trail, affecting not just riders but the wider Oturehua community as well.
Looking to the Future
Despite the uncertainty, Liz and Grahame remain hopeful that the right person—or people—will see what they saw all those years ago.
“We’ve had interest,” Grahame says, “but getting people over the finish line is the hard part.”
They believe the Railway Hotel is perfectly positioned for someone with fresh energy and ideas, and for those looking to live, work, and raise a family in Central Otago while running a business that’s integral to one of New Zealand’s Great Rides.
As for Liz and Grahame, a slower pace is calling with family, fishing and boating may featuring.
A Legacy of Worth Continuing
As they reflect on their time at the Railway Hotel, it’s the people they’ll miss most.
“We’ve met the most incredible range of people,” Liz says. “Rail trailers, politicians, submariners—you name it. I could write a book.”
The Oturehua Railway Hotel stands as a testament to what passion, community, and hospitality can build. For anyone who has stopped in along the Otago Central Rail Trail, it’s more than just a pub—it’s part of the journey.
And for the right buyer, it could be the beginning of an unforgettable one.