The famous Chateau Tongariro Hotel has been given an E grade in its earthquake rating, meaning it is at very high risk.
The risk to people in the building is calculated as being 25 times greater than expected for a new build.
The detailed seismic assessment of the hotel lays out a litany of expensive shortcomings including understrength foundations, chimneys and parapets at risk of toppling, a lack of bracing, and unreinforced masonry infill.
The historic hotel has been closed indefinitely after Kah New Zealand withdrew in February, handing stewardship to DOC.
Kah's 30-year lease expired in April 2020, but it continued running the chateau until this year.
Ruapehu Mayor Weston Kirton told Checkpoint that the seismic information was from an older report and may not reflect the current risks of the building.
"We've really got to wait with interest ... [for] the Department of Conservation to to carry out their processes."
He said it was important to look at the current report, and see what the DOC was doing to mitigate those issues.
"We're talking about a 90-year-old building. But having said that, I think [in] 2005 there were 40 new units put in there. So that's not all totally 90 years old and it's not all fragile.
"There's a number of buildings throughout New Zealand that are a similar ilk and that need to have some strengthening, but I what I'm saying is that from a community point of view, it's not all down and out. It's actually waiting with interest to see what DOC come up with, their plans to see whether or not those reports are real."
He said the cost just to do a report was about $60,000. "I can't confirm that with what DOC are paying, but I know that's the sort of money that was applied for through heritage funding."
Repairs would cost "millions of dollars, there's no doubt about that".
He said the previous owners of the hotel "did not have confidence here was going to be a ski season, didn't have confidence that they could as a company carry on with these sort of the liabilities".
Kirton said there were many heritage buildings throughout New Zealand "that the government come in and give support to, and one in particular in Auckland and Northland Council and the government will be funding the Saint James Theatre".
He said a more recent, robust report was needed.