"I think he was surprised to see a New Zealand police officer here.
"Having said that, he has been very quiet since his apprehension and just considering his situation," Mr Pannett said.
It appeared that Smith had intended to stay in Rio for a long time and had made inquiries into long-term accommodation.
Smith had assumed the identity of an Australian named James Paul Andrews when he checked into Cidade Maravilhosa Hostel in Santa Teresa Wednesday morning.
Mr Pannett told the press conference he was grateful for the work of the Brazilian Federal Police and the public in Rio, "who have shown very good vigilance in knowing that this person was in their community".
Nobody at the hostel had any reason to suspect he was a convicted murderer, said a staff member at the hostel, who did not want to be named.
"He was a normal customer, he came here yesterday and asked to spend two days with us. He paid in cash and asked for a shared room."
Smith has been incarcerated at Ary Franco, a notorious Rio prison where conditions have been condemned by the United Nations.
He is expected to be deported from Brazil, rather than extradited to New Zealand.
Smith appeared in court yesterday, following his capture.
Mr Pannett, a born-and-bred Northlander, was made a Member of the New Zealand Order of Merit in 2009 before he was appointed manager of intelligence operations at the National Intelligence Centre, based at Police National Headquarters in Wellington.
He joined the police in 1980 and spent several years stationed in Auckland, before returning to the North.
In 1987, he started with the Criminal Investigation Branch in Whangarei and in 1998 he established the Northland District Intelligence Unit.
Before his move south, Mr Pannett held the positions of sub-area manager for Bay of Islands, Northland strategic crime Co-ordinator and Northland District crime services manager.
He was also a member of the New Zealand Police liaison team posted to the Beijing Olympics.
- additional reporting NZME.
