You can do this track as a one day out and back ride or make a weekend of it, and stay in the hut. However it's a grade 4 ride so is not entirely suitable for bike-packing with overnight gear including sleeping bag, food, cooker etc.
It's a technical back-country ride on a hiking track that has been upgraded to make it almost all rideable. You'll be going up a river valley in regenerating forest but you'll get the odd good view.
Do not confuse this track with the "Great Lake Trail - Waihaha". They both start at the same place but the Waihaha Hut Trail goes upstream rather than down to Lake Taupo.