The Karaka Tree Motel is 100 meters from the shores of Lake Taupo. Guests can walk or drive into the town center. It is also just a short drive to the Taupo Bungy. The Karaka Tree Motel is 5 km from the nearest airport, and is best reached by car.

There are 24 units at the Karaka Tree Motel, available as Spa Studios, Twin Studios, one bedrooms, and two bedrooms. Units are built as semi-independent apartments, with fully equipped kitchens. Rooms have microwaves, Sky TV television service, ironing sets, clock radios, and bathrooms with walk-in showers and hair dryers. Uniquely among local hotels, each room has its own geothermal hot mineral pool.

The Karaka Tree Motel is a Qualmark four star property. A Continental breakfast is served each morning, although there is not a full service restaurant on the property. Business guests have use of a conference room with Internet access, fax, and photocopying services to support it. The hotel is a smoke free property. Free parking is offered to guests with vehicles.