"It is possible that some of the original external fabric of the building is repairable if the plaster is removed.
"It is not the oldest hotel in Otaki, nor probably the best preserved (although all have been altered over the years).
"I would recommend the owners attempt to find an adaptive reuse for the building, and to repair it while protecting the original spaces and fabric where possible.
"However, I acknowledge that finding such an adaptive reuse may be difficult."
But a builder's report by Capital Construction director Brent Wickens said the building was in a dilapidated condition, unoccupied, and wasn't fit for use.
A preliminary estimate to restore it to a 3.5/4 star status was over $5 million but more hidden costs were likely so repairing it wasn't a viable commercial proposition.
"The only commercial option would be for it to be demolished and rebuilt to the current standards which would also be the cheapest option."
And a real estate report from Colliers International's Dean Anderson said getting the hotel back to its original state and use would be "totally unfeasible and there would be no appetite commercially to have a hotel in this built up residential area, and I don't believe council would permit a liquor licence for this property".
He didn't think there would be any demand for office use as it was away from the town centre where businesses predominantly wanted to be.
Mr Anderson recommended putting an application in to have the property changed from residential to medium density housing "which the area is crying out for".
"This would make a fantastic medium density housing development."
The hotel was an important part of the Otaki landscape especially in the early days, the heritage report noted.
"From the 1890s until perhaps the 1940s or 1950s the hotel was used for large meetings and dinners as well as a public house and for accommodation and food, and has held a vital role in the social fabric of the small town, for both locals and visitors alike, reflecting the time Otaki was a developing township and its later development, which has a historical importance, especially in the early growth and development of Otaki."
And it was connected with many local significant events.
"When visiting to discuss (1898) and later to open (1901) Otaki's first road bridge, Premier Richard John Seddon dined at the Jubilee.
"After the opening of Otaki's first hospital in 1899, by Lord Ranfurly, the VIPs lunched at the Jubilee Hotel."