High-rise potential for backpackers’ hostel for sale
A long-running Surfers Paradise backpackers’ hostel on three blocks zoned for high-rise development will go under the hammer this month.
Backpackers in Paradise at 40 Peninsular Drive, Surfers Paradise occupies at 1,546sq m site with dual street frontage to Leonard Avenue and has hit the market for the first time after 35 years of operation.
Marketing agent Simon Robertson of Bourke Commercial said the buyer would have the option to purchase the site as vacant possession, or with a lease in place containing a demolition clause.
He said the site comprised three lots and offered two street frontages, with views over Main River to the north, and would suit a boutique development while providing the owner with immediate holding income through the hostel.
“The site currently accommodates a popular 200-bed backpackers’ resort accommodation which provides a holding income either under lease or management. Alternatively the offering can be bought as vacant possession,” Mr Robertson said.
He said the business had weathered the city’s stark decline in tourism during COVID, but the owner now planned to retire.
“I’m sure the turnover is certainly down, but in terms of his position in life it’s more to do with retirement and stepping away from it. The owner has had it for over 35 years now and he’s ready for retirement,” Mr Robertson said.
The L-shaped facility has a 36m frontage to Leonard Avenue, and an 18m frontage to Peninsular Drive, with a liquor license, commercial kitchen, games room, laundry, pool, and a central courtyard.
It is zoned for high-density residential development under the Gold Coast City Town Plan, and also sits within the ‘HX’ height overlay allowing for virtually unlimited height potential.
More than a dozen inquiries had been received already.
The property will be auctioned on May 26.