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Where to stay between Christchurch and Te Anau?

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We are staying at a lovely farm outside Christchurch for 5 days and have decided to choose Te Anau as the second main base for our 2 week vacation. Given that the driving time between the two locations is about 9 hours, we thought we could do two extra places, for a couple of days each, between the 2 long drives back and forth. We were considering Dunedin and/or Queenstown but would welcome any suggestions on any other nice hotel in a pretty location in a small town in-between the two.

We are traveling with 2 kids aged 6 and 10, around Christmas. Our budget per night for the family could be up to USD350 a night.

Many thanks for your replies.

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