We stayed at the Discovery Lodge for 3 nights in March 2007 as part of a 10 night package to NZ arranged through a travel agent.
Negatives
Unfortunately, we found this accommodation the worst we stayed in while in NZ: drunken backpackers singing (?) loudly at 1 am; recycling bins full of empty bottles being collected at 3 am each morning (why does it take so long?) - and, to top it off, lukewarm water in the shower each morning.
Positives
It is close to the lake and some good restaurants in the centre of town.
Would we stay there again? No!

Don't know what other people are talking about but this has to be the best place to stay in Queenstown. It is so centrally located and even has it's own bar that has nightly themes every night if you can't bother heading outside.

I had heard nothing but bad things about this place the whole trip including that most of the rooms don't have windows. You pull up to the building and the whole thing is covered in windows not to mention most rooms have tiny little balconies you can hang out on with full size sliding glass doors.

The noise was not an issue for me either. Our room as most on our floor were down a small hallway that had a single hit bathroom on so it helped cut back on noise. We never heard the club downstairs and we were on the 1st floor with the kitchen.

The bathrooms were cept clean everyday as were the rooms since the staff comes in everyday to tidy and vacuum.

If you are staying in Queenstown you should be staying here.

First of all this place is no more than a backpacker hostel. Our travel agent should of told us this basic fact. Our room was a twin bed with shared toilet and shower facility.
On the ground floor of Discovery Lodge there is a night club called Altitude. The music starts up around 10 PM and goes through to 3 AM. Our room was two floors above the night club, but we could still hear the thump thump very clearly. Opening windows to let in fresh air was out of the question.
Binge drinkers would stumble up the stairs at all hours wooping and hollowing out loud. The door did not attenuate this noise at all.
The showers were interesting. There is no hot / cold water adjustment so you get what is given, whether it be scalding hot or luke warm. There is only one single button to turn on the shower, and it turns off after 20 seconds. So there is continual pressing of this button if you wish to have a continuous shower.
I never did take the picture of the vomit on the stairs, nor can I describe the strange musty smell of this establishment,
All in all I will not be staying here again.

This place was built in July 2004 so its new, fresh, its right on the main st only one block from the lake, it has Altitude Bar & Cafe, it has... wait - what doesnt it have?
Quality beds, friendly (slightly mad) staff, a classy bar, great cheap food, a travel desk with backpacker deals - we loved it!