The destruction sparked a police response, and further investigation uncovered another property was damaged.
Sergeant Matt Lee, of Dunedin, said police were called to South Road after a member of public heard people shouting and lots of glass breaking, at about 4am on Saturday.
When police arrived at the scene, they discovered all the outer windows of the Carisbrook Hotel had been smashed.
Large amounts of glass littered the footpath and smashed bottles were scattered over the road.
The doors to both entrances were removed from their hinges and smashed.
Police located a property further down the street, that had hosted a youth party earlier in the
night, and also had also had smashed windows.
A teenager at the party told police another youth, unknown to members of the party, had smashed their windows before moving on to the Carisbrook Hotel.
Inquiries were ongoing to identify the man, Sgt Lee said.