The centrally located Canberra City YHA has been listed for sale, as the budget accommodation provider strategically reviews its property portfolio in response to the pandemic.
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The 65-room youth hostel at 7 Akuna Street has been operating under the YHA banner since 2005 and is a popular accommodation option for schools and large groups.
CBRE Hotels have been appointed to sell the site and have estimated a price guide of approximately $10 million.
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YHA Australia CEO Paul McGrath said the sale comes amid a challenging period for the accommodation industry.
"The tourism sector has been devastated by the impact of domestic and international border closures," he said.
"So YHA has had to strategically review the property portfolio and unfortunately Canberra City YHA has been identified as an asset to divest."
The 557-square-metre Crown land-leased site offers redevelopment options, including residential opportunities and the ability to increase the height to a maximum of 28 metres, subject to planning approvals.
Buyers have the choice to acquire the property with vacant possession or to continue branding opportunities with YHA.
CBRE Hotels' Hayley Manvell said the lack of competition in Canberra's affordable accommodation market places the business "in an ideal position to leverage future growth opportunities".
Mr McGrath he would be "extremely happy" if a new owner was interested in continuing to operate the property as a YHA.
"This is a strong brand in Australia and globally, as part of the Hostelling International network of 3000 places to stay," he said.
"There is a dearth of affordable accommodation in Canberra and the YHA also accommodates school groups on excursions as part of the educational curriculum, so it would reduce options for many types of travellers should it close."
In addition to 264 beds, Canberra City YHA also includes a manager's residence, bar and restaurant, indoor swimming pool, rooftop barbecue terrace and traditional communal facilities.
Expressions of interest are open until October 28, 2021, unless sold prior.
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Brittney Levinson
Brittney is part of the federal political bureau, covering politics, the public service and economics. Brittney joined The Canberra Times in 2021 and was previously the property reporter. Got a news tip? Get in touch: brittney.levinson@canberratimes.com.au
Brittney is part of the federal political bureau, covering politics, the public service and economics. Brittney joined The Canberra Times in 2021 and was previously the property reporter. Got a news tip? Get in touch: brittney.levinson@canberratimes.com.au
