Investor secures CBD hostel
Hospitality group rebrands Cairns complex
A prominent international hospitality group has swooped in to snap up and rebrand a flashy CBD backpacker hostel in an opportunity presented by the pandemic.
Freedom Hostel Cairns has been sold and rebranded as The Village Cairns.
CBRE’s Danny Betros and Hayley Manvell brokered the deal on behalf of Melbournebased vendors Shield Abbott Pty Ltd, which is part of the Jreissati Group that owns Bensons Property Group.
Bensons Property Group made waves within city property circles through the acquisition and refit of former Plaza that reopened as the Benson Hotel Cairns in 2021.
Shield Abbott purchased the Freedom Hostels building in 2007 when the business operated as Global Backpackers.
A rebranding in 2019 after a $1m renovation led to the fresh property being launched as Freedom Hostels just before the pandemic hit.
“It was bad timing,” Mr Betros said.
The Village Backpacker Group which includes the Drifter chain of hostels now owns the building and will opness,
erate the accommodation.
The company has scoured the backpacker and budget accommodation market for opportunities
after the industry endured a disastrous run throughout the pandemic.
“If you are in the hostel busiRydges then Cairns has to be part of your operation due to the popularity of the destination and the average night stay of just under five nights,” Mr Betros said.
“Having experienced a strong recovery post pandemic, Cairns is well positioned to continue to benefit from strong domestic visitation as well as international travel as airlines such as Virgin, Jetstar, Air New Zealand and Singapore Airlines start to return, providing connections to Europe, North America and Asian markets.”
In the centre of Cairns, the 1945sq m site incorporates a three-level, mixed-use accommodation and retail complex, including the recently refurbished 200-bed hostel and nine retail tenancies in an arcadestyle configuration.
“Several prominent hospitality firms are scouring the national budget accommodation market for opportunities, however there are limited assets available,” Ms Manvell said.
According to its website the hostel boasts a relaxed tropical atmosphere, providing the perfect opportunity for travellers to meet new people.
New Village Cairns branding is yet to be installed at the Shields St property.