YHA Australia has continued the strategic realignment of its national portfolio with the sale of YHA Alice Springs to the Bhullar family, who will continue operating the property as a backpacker accommodation facility.
CBRE Hotels’ Hayley Manvell and Taylor Morris negotiated the transaction following a campaign that garnered over 50 enquiries, with multiple offers received.
It marks the latest milestone in YHA Australia’s portfolio realignment, following a series of successful divestments facilitated by CBRE across Canberra, Airlie Beach, Coffs Harbour, Glebe, and Perth.
A Bhullar family spokesperson said, “We are excited to continue the legacy of this iconic site while introducing operational improvements that reflect the evolving needs of travellers in the Northern Territory. This acquisition marks our second venture in hospitality and reflects our long-term vision to contribute to Alice Springs and Central Australia’s tourism growth. We look forward to working collaboratively with local businesses and the Northern Territory Government to strengthen visitor experiences while continuing the legacy of this iconic site.”
Situated on a 2,040 sqm freehold site in central Alice Springs, the property features 108 beds across 22 rooms and offers extensive guest amenities, including a communal kitchen, lounge, games room, swimming pool, BBQ area, outdoor movie screen, and laundry facilities.
Originally constructed in 1942 as the Pioneer Walk-In Theatre and later renamed Snow Kenna’s Walk-In Picture Theatre, the site’s historical significance adds cultural value to its appeal.
The acquisition marks the syndicate’s first venture into accommodation investment, with plans to enhance both operations and the guest experience.
Director Hayley Manvell commented, “We’re pleased to have delivered a result that supports YHA’s divestment strategy and aligns with the Bhullar family’s investment vision. This sale highlights the enduring appeal of Alice Springs as a gateway to Central Australia’s iconic destinations. With solid tourism fundamentals and a prime location, the asset offers both operational reliability and long-term growth potential. Notably, the passing yield of 7.7% sits comfortably above the current cost of debt, reinforcing the attractiveness of regional accommodation assets for private investors.”
