Underground motel in outback Coober Pedy offered to market for $1m
One of Australia’s most quirky businesses, an underground motel in the heart of Coober Pedy – which could be renovated to include a spa or pool – has been listed for sale for $1 million.
Set in the underground opal mining town where Mad Max Beyond Thunderdome was filmed, Radeka Downunder Motel invites guests to “live like a local”, with some beds in iconic deep-dug rooms more than six metres below ground, and others above ground for those who prefer conventional style accommodation, with a range of other communal facilities on offer.
Located along the main drag at 1 Oliver Street, the property offers investors a chance to invest in outback tourism, with Coober Pedy serving as a rest stop for road trippers, tour groups and travellers along the Adelaide-Darwin route.
Famous as the opal capital of the world, the town is located on the edge of the Great Victoria Desert and is known for its unique underground homes, churches, and hotels, designed to cater to extreme summer heat, with a cool interior in summer and a warm interior in winter.
Since 2023, it’s been a labour of love for the owner who has poured himself into improving the property’s 32 sellable rooms.
The listing describes nine motel-style rooms with private en suites, and 23 private budget rooms with communal facilities which are “easy and efficient to clean, allowing for the most competitive prices in town”.
This unique offering is complemented by a single rooftop room known as “the sundeck” with panoramic views over the town and the Kanku-Breakaways Conservation Park, as well as two above ground motel rooms, with potential for a third above ground room.
Communal areas – including a kitchen and dining room, as well as an outdoor dining area, an underground reception with a bar, and a pool table – complement the mix of accommodation styles, located at depths ranging from 3.5 metres to 6.5 metres below.
The property also features a manager’s residence with private staff facilities, extensive storage with five storerooms, and a commercial underground cool room to support the bar, and extensive off-street car parking at the front and rear able to accommodate buses, caravans, trucks and trailers.
The property also bursts with potential to offer 39 rooms in total, without further excavation by using empty undeveloped rooms.
“It’s been non-stop renos and improvements since the day I took over,” he says.
“I’ve dedicated my life for the past two years to improving this place and all the profit it makes goes straight back into improvements.”
Upgrades includes new private budget rooms downstairs, laundry and plumbing, including an efficient new hot water system and re-plumbed water pipes.
The motel also offers some surprise features – the thunderdome, space for a family room, and an opal showroom – that new owners could develop, including uncharted underground tunnel networks, known as the catacombs.
The thunderdome is described as a “vast domed underground room with adjoining spaces and a large ventilation shaft” which could be converted into a spa, pool or feature entertainment room to attract more tourists. It is surrounded by three large rooms and “could be made into anything”, the owner says, adding: “There are other underground rooms that have been dug but not developed yet, offer big potential.”
Another large room, formerly an opal and souvenir shop which doubled as an internet cafe, could also be reactivated to capitalise on the area’s thriving tourism and opal industry. “That room has all sorts of shapes cut out of the wall and made into cabinets for displaying products and jewellery. The business used to run many bus tours from the motel, which we still get asked about today and have huge potential for in the future,” he adds.
The property, listed with For Sale By Owner Australia, offers “a rare opportunity to purchase not just a business, but a piece of South Australia’s outback tourism heritage”.
“Radeka Downunder is an outback icon with endless possibilities. With underground charm, solid infrastructure, room to grow, and a loyal flow of passing travellers, this is your chance to own a truly one-of-a-kind business in one of the world’s most unique towns,” the listing reads.
The vendor became acquainted with the long-running venue as a backpacker himself many years ago, and will take precious memories of running the unique venture with him.
“Meeting people from around the world, taking respite in the cool underground areas during the hot desert summers, engaging with the community and other business owners, and learning about the property’s rich history and prominence in the town,” he says, recalling his favourite aspects of the job.
“I will continue to improve it until it sells. If it doesn’t sell then I will reap the benefits myself once the spending has finished.”
Coober Pedy is the largest town around mid-point between Alice Springs, about 680 kilometres away, and Port Augusta, another 540 kilometres along.
The town boasts a supermarket, post office, TAFE, school, childcare, gym, pool, cinema, and mechanics.
In August, the Coober Pedy Experience Motel was listed for sale for more than $2.5 million.
