Senior Sergeant Anthony Bond, of Dunedin, said officers were called to the Kingsgate Hotel at 2am on Saturday.
A 26-year-old man who had rented a room was "yelling and banging and crashing and causing a disturbance," as well as threatening multiple people who came to investigate the commotion, Snr Sgt Bond said.
Officers found the man in the hotel foyer in Smith St and arrested him.
After inspecting the room, Snr Sgt Bond said it was damaged to an estimated worth of at least $10,000.
A fridge, television and lamps were destroyed and there were multiple holes in the walls.
Glass from a sliding door and a balcony balustrade were shattered, while electrical sockets were pulled out and the headboard damaged.
Chairs had also been thrown out the window.
The man was charged with intentional damage and bailed to appear in the district court tomorrow, Snr Sgt Bond said.
