Alice Springs YHA backpackers hostel listed after 17 years
Another YHA backpackers bites the dust, the latest in a series of YHA hostel off-loadings as part of the company’s national rebrand.
The YHA Alice Springs hostel has hit the market after 17 years, creating an opportunity for investors to springboard from recent investment poured into the outback city.
“There’s been a lot of investment into Alice Springs, especially into the hotel and casino market,” said listing agent Hayley Manvell, director of CBRE Hotels.
The historic hostel, a former movie theatre established in 1942, spans 2040 square metres in the red city’s CBD, almost five hours’ drive from Uluru, and about 13 kilometres from the Alice Springs airport.
The hostel – at 26 Parsons Street – has attracted a 4.2-star Google rating, and boasts 108 beds across 22 rooms, a swimming pool, and communal facilities including a kitchen, dining area, lounge, games room, barbecue area, outdoor movie screen, laundry, as well as nearby restaurants, attractions and transport.
The property offers diverse income streams and is close to attractions such as Alice Springs Desert Park, the Larapinta Trail, and the Historic Telegraph Station. It is being offered as a freehold going concern with a price tag over $2 million.
“The YHA Alice Springs is located at the gateway to Australia’s Red Centre, offering unparalleled access to Central Australia’s iconic cultural landmarks, including Uluru, Kata Tjuta/The Olgas, and Kings Canyon,” added Manvell.
Originally the Pioneer Walk-In Theatre, constructed in 1942, the property later became the Snow Kenna’s Walk-In Picture Theatre, before serving as a social place to rest for weary outback travellers.
YHA Australia is undergoing “strategic re-alignment”, recently selling off YHA properties in Perth, Canberra, Airlie Beach, Coffs Harbour and Glebe.
It was reported that this recycled capital is being poured back into the brand’s contemporary future as part of YHA’s national development strategy.
YHA Australia is set to offer another flagship accommodation next year, a 450-bed property taking up the base and first five floors of the Sydney CBD’s $1.8 billion Atlassian tower.
It also recently updated four properties – YHA Thredbo, YHA Sydney Harbour, YHA Sydney Central and YHA Brisbane City – and reportedly following market research has ditched the term hostel due to negative connotations, opting for “property” instead.
The hostel, close to Alice Springs Desert Park, the Larapinta Trail, and the Historic Telegraph Station, is being offered as a freehold going concern.
Alice Springs’ position as a diversified hub, the gateway to the nation’s red centre, lures tourists and primary workers alike.
“We’ve had a lot of inquiries – and a lot of interest from government organisations and NGO for alternate uses of accommodation offerings,” said Manvell.
“We have seen increasing interest from both local and interstate high-net-worth investors, who recognise the value proposition that regional hubs like Alice Springs offer.”
“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.
Real estate magnate Sam Arnaout’s expansive group Iris Capital is dominating the region, owning the award-winning Lasseters Casino in Alice Springs, purchased for $105 million in early 2021 from the Singapore-listed group Lasseters International Holdings.
Iris’ Northern Territory portfolio includes the Gap Tavern, Todd Tavern, Diplomat Hotel, Mercure Hotel and Aurora Hotel.
The YHA property is being offered as an expressions of interest campaign.
