Underground motel in outback Coober Pedy offered to market for $1m

Located along the main drag at 1 Oliver Street, the property offers investors the opportunity to invest in outback tourism while benefiting from the private vendor’s recent renovations.

It’s been a labour of love for the owner since 2023, with improvements to the property’s 32 rooms, some of which are cave-like, while others are deluxe and above ground.

“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.”

Among the upgrades are 16 new private budget rooms downstairs, upgraded laundry facilities, a commercial-grade, professionally fitted cool room, and plumbing, including an efficient new hot water system, as well as replumbed water pipes.

It also offers some surprise features that new owners can activate to create added value, including uncharted underground tunnel networks.

“The thunderdome, a large, tall domed room surrounded by three large rooms, could be made into anything, and there are other underground rooms that have been dug but not developed yet, offer big potential,” he adds. 

Another large room, formerly an opal and souvenir shop that doubled as an internet cafe, could also be reactivated. 

“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. 

Coober Pedy, famous as the opal capital of the world, 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.

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.

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 a mix of accommodation styles, some located at depths ranging from 3.5 metres to 6.5 metres underground.

There are 22 budget rooms that use multiple large communal facilities and 10 deluxe motel rooms with private en suites, with another almost complete.

There’s even a rooftop room known as “the sundeck” with panoramic views over the town and the Kanku-Breakaways Conservation Park.

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 between Alice Springs and Port Augusta, boasting a range of amenities that include 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.