He posted a message on the hotel's Facebook page on Thursday stating the historic hotel would be going on the market on Monday.
"It's time for me, time to move on and start a new life," he said to the Times-Age.
"I have thoroughly enjoyed my time at the Royal. It's been just fantastic."
The Featherston community had embraced them totally during the five years they had been in business, Mr Davies said.
"It's been just wonderful ... It's blown me away the support I have had from the community and staff," he said.
"It just proves what a fantastic place Featherston is."
The Royal Hotel was first built in 1868 during the foundation of the settlement and the large two-storey building was extensively damaged by fire a few years later.
It was rebuilt in 1893 and is one of only two hotels in New Zealand displaying the coat of arms. The other is at Naseby in Central Otago. The Royal is at the Rimutaka end of the township, with 35 rooms including a commercial room, several sitting rooms, a dining room, kitchen and billiard room.
Mr Davies said one of the highlights for him since they had taken over the establishment was seeing it become a family-focused hotel.
"What has made it really work for us has been the local residents who come in. It's been fantastic seeing the families coming in and the children experiencing a kind of pub culture in a controlled environment."