YHA Australia has sold its Alice Springs property as part of a strategic realignment of its national portfolio.
YHA Alice Springs was purchased by the Bhullar family, who will continue operating the property as a backpacker accommodation facility.
The sale, negotiated by CBRE Hotels’ Hayley Manvell and Taylor Morris, follows YHA Australia’s successful divestments across Canberra, Airlie Beach, Coffs Harbour, Glebe and Perth.
“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,” a Bhullar family spokesperson said.
“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 was originally constructed in 1942 as the Pioneer Walk-In Theatre and later renamed Snow Kenna’s Walk-In Picture Theatre.
It features 108 beds across 22 rooms, a communal kitchen, lounge, games room, swimming pool, BBQ area, outdoor movie screen, and laundry facilities.
“We’re pleased to have delivered a result that supports YHA’s divestment strategy and aligns with the Bhullar family’s investment vision,” said CBRE Hotels Director, Hayley Manvell.
“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.”