A Rotorua pub owner says what's happening to the city is awful. 

Housing Minister Megan Woods has visited to launch a housing hub, a one-stop shop to provide support for people in Government-contracted motels. 

She concedes there's frustration in Rotorua as the Government tries to address homelessness. 

Pub owner Reg Hennessy told Mike Hosking if Woods' plan goes ahead, he can only see Rotorua becoming worse. 

He says the motels down Fenton Street are a disgrace, and he's not sure it's better than people living in cars, because some of the situations are horrible. 

LISTEN ABOVE