Noah’s Backpackers, a landmark hostel in Bondi Beach, has been put on the market as a massive development opportunity for an investor to transform the three-storey building into a boutique apartment block.
Industry insiders said that the property may fetch more than $75 million with its prominent location at the corner of Campbell Parade. Its 1,087 square metres landholding has three street frontages, 260 bedrooms, and retail spaces.
Sales agent Matt Pontey of Colliers said that whilst investors familiar with the backpacking culture have expressed interest in acquiring the property, the site has a strong potential for mixed-use developers as well. He predicted that the sale could break records of prices paid on Campbell Parade.
Noah’s Backpackers was built in the 1930s and became a landmark site as the entry to the commercial area of Bondi Beach. Since the late 1990s, the hostel belonged to a family consortium who are now divesting its assets.
Beach lovers, cyclists, and hikers frequent this accommodation because of its proximity to all the essentials, including the heaps of shops and dining sites on Bondi beach. The site also gets large bookings from students and young people who want to enjoy a great experience in the suburb.
During the COVID-19 lockdowns, the hostel suffered outbreaks that forced authorities to cordon off the site. Needless to say, the pandemic has drastically changed the hostel and the hospitality business in general. However, with restrictions easing off Noah’s Backpackers is expected to be busy in no time, and could be busier if redeveloped.
The site has no heritage listing but Pontey hopes that its new owners will be “sympathetic to the character” of the precinct.