He formed the Tongariro Park Tourist Company with a vision to build what was at the time known as The Chateau, alongside the original Whakapapa ski huts, on a land lease of 63 acres.
[6]The hotel was lavishly appointed, with panoramic window views, hot and cold running water in every room, and custom-made high-quality furniture.
James Fletcher, the head of the company, approached the Prime Minister Sir Joseph Ward and asked him to increase the government loan to £60,000.
The sole park ranger, Alf Cowling, was told "his services were to be at the disposal of the Manager of The Chateau, and that his horse was to be available when not otherwise required for hiring out to guests.
"[9] The numbers of skiing tourists declined during World War II, so in 1942 the Chateau was commandeered by the Health Department as an asylum when the Wairarapa earthquakes damaged Porirua Psychiatric Institution in Wellington.
In late 1945 Ruapehu erupted over a ten month period, and the heavy showers of ash disrupted the Chateau's power and water supply;[9] the patients were evacuated to Ramarama.
[13] In the early 1960s a second line was constructed and commissioned in 1964 by the King Country Electric Power Board to improve the reliability of supply to the Chateau and other customers in the area.
[17] To avoid disturbing guests, the expansion used a Scandinavian system of modular construction, with the rooms built in Auckland and trucked to the site where they were installed using a crane.
[18] After the 2008 global financial crisis, skiing holidays dropped off, and Kah New Zealand posted losses for four straight years, totalling $1.9 million, before making a profit again in 2016.
[15] In 2020, in response to the loss of overseas tourists due to the coronavirus epidemic, the Chateau offered discounted ($70 a night) rooms and had over 3500 bookings over May and June, normally quiet months.
The company handed over the keys to the Department of Conservation,[21][23] However, despite Kah New Zealand not renewing the ground lease, as of September 2024 the buildings remain their property.
Deficiencies were identified with parapets and chimneys at risk of falling, inadequate bracing, unreinforced masonry infill, and under-strength foundations.
In 2023, the Western branch of the Te Kāhui Whaihanga New Zealand Institute of Architects recognised the Chateau Tongariro with its Enduring Architecture award.