Iconic Coober Pedy underground opal mine motel listed at $2.2m

ResortBrokers’ Kelli Crouch, senior specialist accommodation broker for South Australia & Northern Territory, is spearheading the campaign on behalf of vendor Hector Xu, who has held the property since 2000.

“This is a highly unique motel, and I’m confident it will attract a buyer who recognises the potential on offer,” says Crouch. “Market conditions are constantly evolving, and the updated price for the freehold reflects this.”

The 16-room property is the only motel in Coober Pedy built within an original opal mine, offering guests the chance to sleep beneath the desert in rooms carved directly from the rock.

The original opal mine dates to the early 1900s, producing opals for decades before its 16 mine shafts were transformed into the Comfort Inn in 1990, operating under the Choice Hotels banner for around 30 years.

Today, the subterranean stay combines heritage with modern comforts, describing itself as where “history meets luxury underground”, offering spacious, well-appointed rooms with en suites, and suites for couples, families, groups and solo travellers.

Guest amenities include a cafe, gift shop, free airport and bus terminal shuttles, Wi-Fi and air-conditioning, and a passive income-earning NRMA electric vehicle charging station. 

“Enjoy the peaceful ambiance as you walk through the hallways and tunnels featuring seams of opals, hidden caves and historical images of the building and surrounding areas,” the motel’s website says.

Set on a 2530-square-metre land parcel, the historic motel also offers another point of difference, featuring the town’s only underground function and conference room, alongside nine extra unutilised carved-out rooms for incoming owners to significantly expand operations.

Run under management, the motel reports occupancy of around 65 per cent and holds a 4.6-star Google rating, alongside multiple industry accolades including a Choice Hotels Gold Award.

Freehold and leasehold options for owner-operators

“At this price point, the freehold represents exceptional value, with 16 rooms, an owner’s residence, a gift shop and a function/conference centre for up to 80 people – the only facility of its kind in Coober Pedy,” says Crouch.

“The leasehold remains available at its current price of $730,000, supported by a brand new 25-year lease agreement, should an operator want to run the property but not own it outright.”

A two-bedroom underground owner’s residence with its own lounge, kitchen and dining area is also included.

“We’re finding the home-plus-business combination has new appeal amid cost of living and housing affordability pressures,” Crouch says.

“It would suit an owner-occupier who’s looking for a unique lifestyle with a motel that’s been a rock-solid accommodation business for over 30 years.

“As locals will tell you, Coober Pedy can get very hot. But you’d never know it in the motel. It’s a comfortable temperature all year round thanks to the natural insulation of being underground.”

Positioned just 700 metres from the centre of the Coober Pedy township, on the edge of the Great Victoria Desert, the property sits 950 kilometres north-west of Adelaide in the heart of Central Australia. Its location on the Stuart Highway makes it a popular overnight stop for travellers driving between Adelaide and Uluru, alongside grey nomads, mining workers and outback adventurers.

Coober Pedy is famous for its scorching climate, lunar-like landscape and underground labyrinth of churches, shops and homes known as “dugouts”, which keep residents and visitors cool throughout the year. On average, a three-bedroom home costs $60,000, according to Domain Insight.

Roughly 80 per cent of the town’s 1770 residents live in sandstone-carved dugouts, which ensure a more comfortable year-round temperature of about 24 degrees, even when the mercury nudges close to 50 degrees.

The town features an amateur horse racing club, a hand-carved cave-like Serbian Orthodox Church, an 18-hole grassless golf course, a drive-in theatre, and an airport. 

The motel sits within walking distance of the Old Timers Mine and Museum and the Big Winch Lookout, while the Kanku-Breakaways, Painted Desert, Oodnadatta Track and Lake Eyre are popular day-trip destinations.