Alice Springs YHA backpackers hostel sells after 17 years

The family, with experience in the hospitality sector, plans to continue operating the backpackers while enhancing the site’s operations and guest experience.

“We are excited to continue the legacy of this iconic site while introducing operational improvements that reflect the evolving needs of travellers in the Northern Territory,” the family said in a statement.

“This acquisition marks our second venture in hospitality and reflects our long-term vision to contribute to Alice Springs and Central Australia’s tourism growth. We look forward to working collaboratively with local businesses and the Northern Territory government to strengthen visitor experiences while continuing the legacy of this iconic site.”

The freehold going concern sale, brokered by CBRE Hotels’ Hayley Manvell and Taylor Morris, followed an expressions of interest campaign that generated more than 50 inquiries from backpacker investors, private groups and alternate-use buyers.

“We’re pleased to have delivered a result that supports YHA’s divestment strategy and aligns with the Bhullar family’s investment vision,” said CBRE Hotels director Hayley Manvell.

“This sale highlights the enduring appeal of Alice Springs as a gateway to Central Australia’s iconic destinations. With solid tourism fundamentals and a prime location, the asset offers both operational reliability and long-term growth potential.

“Notably, the passing yield of 7.7 per cent sits comfortably above the current cost of debt, reinforcing the attractiveness of regional accommodation assets for private investors.”

Located at 26 Parsons Street, the historic hostel was once a movie theatre – originally the Pioneer Walk-In Theatre, built in 1942 – and later Snow Kenna’s Walk-In Picture Theatre before being converted into a rest stop for outback travellers.

Set on a 2040-square-metre CBD site, the 108-bed property features 22 rooms, a swimming pool, and communal amenities including a kitchen, dining area, lounge, games room, barbecue, outdoor movie screen, and laundry. It holds a 4.2-star Google rating and is conveniently located near major attractions, including the Alice Springs Desert Park, the Larapinta Trail, and the Historic Telegraph Station.

Alice Springs, located approximately a five-hour drive from Uluru and 13 kilometres from the airport, continues to attract tourists, primary workers, and investors due to its position as the economic and tourism hub of Central Australia.

Manvell noted that renewed investment in the outback city had spurred “a lot of inquiries” – particularly from government organisations and NGOs seeking accommodation.

“This location is not only a tourist destination but also the main economic, business, and service hub of the region, underpinned by mining, tourism, and primary industries. It also services parts of South Australia, Western Australia and Queensland,” she said.

YHA’s Alice Springs sale follows a series of recent divestments, with the organisation offloading hostels in Perth, Canberra, Airlie Beach, Coffs Harbour and Glebe as part of its “strategic realignment”. The recycled capital is being redirected toward a new generation of properties and upgrades across its network.

The group is currently developing a 450-bed flagship property within Sydney’s $1.8 billion Atlassian tower, while refurbishments have recently been completed at YHA Thredbo, Sydney Harbour, Sydney Central and Brisbane City.

YHA has also dropped the “hostel” label from its branding, citing negative market perceptions, in favour of positioning itself as a modern accommodation brand for contemporary travellers.