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Unique 100 Bed Backpackers In Albany Western Australia For Sale

Albany, Western Australia
Asking Price:
$495,000 (AUD) Furniture / Fixtures and Inventory / Stock included
Sales Revenue:
$250K - $500K (AUD)
Cash Flow:
$250K - $500K (AUD)

A unique 100 beds plus Backpackers hotel for sale, located in WA's most beautiful region and inside the state's oldest hotel.

What will you get?

Income, lifestyle and sharing your life with a fascinating range people of all ages, cultures and backgrounds, from all over the world. We opened our doors over seven years ago, but in the months before we spent every hour and dollar on renovating and decorating this magnificent old hotel, and this has been a labour of love, our business and our home every day since. An ongoing project, but it is time for someone else to take over and take this wonderful lifestyle business to the next level.

You'll find 1849 Backpackers at the London Hotel, in the centre of Albany overlooking Princess Royal Harbour and the Anzac Peace Park. From the entrance you come into the private car park, past our own enclosed grass, four a side soccer pitch/volleyball court and over a small bridge into beautifully kept gardens and BBQ area. Past the fish pond onto the veranda with a water feature and plants, into the entrance and reception.

To the left we have our breakfast and pancake room, where for the past four and a half years we have been making pancakes for guests each morning. This area has a commercial style kitchen and dining area, and is a quiet retreat for reading, internet or just hanging out. This has been newly decorated, and all the areas in the hotel are on a rolling maintenance schedule so there are no urgent jobs that ever need doing.

We have 27 rooms down two wings and at the front of the hotel, overlooking the harbour. These are a mixture of double, luxury queen, twin, 4, 6 and 8 bed dorms. At the centre of the building is a very big undercover sunken garden area that used to be the stables and later the restaurant and kitchen to the old London Hotel. This has a high roof with natural light.

Inside this area we have built a stage with stage lighting, added musical instruments, installed a water fountain and put in a table tennis table, darts and games. The main communal kitchen has been completely rebuilt and re fitted and is open for guests to do their own cooking. Both kitchens have top quality Ilve stoves and cook tops, quality dishwashers and stainless steel benches, extractors and fittings. A tool room, four extra bedrooms and a bathroom run down one side of this area.

Check on TripAdvisor for what to expect.

Upstairs at the front of the hotel we have a big comfortable TV lounge with a large flatscreen with Foxtel for sports and movies. At the other end is where we currently live, in a separate from the hostel but attached to the building, self contained living area.

1849 Backpackers caters to travellers, groups, tours and for all the marketing and work we have done establishing this business we feel we have barely scratched the surface of what is possible, as far as promoting the hotel is concerned. In 2016-18 we have been voted by two booking engines as Australia's top hostel, based on consistent 100% reviews on their websites.

This news reached the State newspapers and radio. However there is so much more we could be doing to promote ourselves to schools, colleges, universities, major businesses, sporting groups as well as marketing to the ever increasing numbers of travellers being attracted away from traditional destinations such as Europe and North Africa. We have yet to design a good logo, or even have a quality flyer. Most of our business comes word of mouth and via 11 booking engines, Facebook page and our website.

A big opportunity also exists to purchase a 12 seat vehicle and operate tours as a separate business, and we own the domain which we will include in the sale of the business, if you like. Also, with a few small tweaks, either kitchen can be put to commercial use, something we have yet to monetise.

Albany and 1849 Backpackers are surrounded by seven diverse, pristine National Parks recognised worldwide, a new multi million dollar marketing initiative set up for the region, the award winning Anzac Centre within walking distance, an easy drive to the newly opened lookout at The Gap and Natural Bridge and we are located opposite the new Entertainment Centre and harbour. Two new 4 star hotel concept designs have been recently passed by council for nearby Middleton Beach and the Albany foreshore, and several major hotel chains are looking at these spaces to develop. The marketing of the region just from these two projects will have an immediate positive impact to our numbers as well.

There are mountains, a temperate rainforest, two rivers, two natural harbours and 49 beaches to explore. Little Beach at Two People's Bay is less than 30 kms away and is recognised in the top ten beaches in Australia, and every winter for four months whales come cruising past and linger awhile close to our beaches. A population of 34,000 have no intention of living anywhere else.

1849 Backpackers is redefining what a Backpackers Hotel can be, and this is a wonderful opportunity to jump in to a successful, well known and loved business and make your own personal mark. We are proud of 1849 Backpackers and if you buy it, we know you will be proud of it too - and what a lifestyle!

Great for a couple of friends or partners, perfect for two couples with multiple skills and a love of life and people.

An offer of 250,000 will secure the business for you today, because due to personal family reasons we have to be in Europe for a few years. As hard as it is to let go, we really hope someone will see this and jump at this amazing opportunity we are offering. A 4 x 5 year lease agreement is in place and the landlord looks after any structural issues that come up. He is long term local local business figure and very well known and respected in the region.

Check out our Facebook and webpage, and check our reviews. This is rare, and something very special.

For more information contact us below.

Property information

Real Estate:


Lease Terms:

4 x 5 years, so 20 years with options to extend.

'Leasehold Rent' above is Rent and INCLUDES GST and Variable Outgoings.

Leasehold Rent:

$106,850 (AUD) per annum

Living Accommodation:

A choice of living areas exists within the building, plus rooms for night managers. An area has been closed off to include bathroom toilet plus two rooms. We are currently living in this area. A room is also put aside for our helpx workers (For more about helpx, a way of hiring willing good workers in return for accommodation and some food, go to )

Premises Details:

1849 Backpackers is located inside one of WA's oldest hotels, the London Hotel. The hotel has two street frontages, one from Stirling Terrace which is a walkway only, and one from 45 Peels Place into our own private carpark, room for over 20 cars. The building at the front houses Liberte wine bar and cafe downstairs, which is a separate business. Upstairs are two large bedroms and lounge overlooking the harbour, with two wings leading back to all 23 rooms, kitchen/dining room and communal areas.

Downstairs at the back, between the two wings, is an undercover area which used to be a beer garden/restaurant, and is now our new theatre and performance space/cinema/cafe. The area is about 19 metres by 8 metres, with four extra rooms plus bathroom on one side. Opposite is what used to be the hotel commercial kitchen which has been completely stripped back, repaired, re-floored with commercial kitchen flooring and repainted to a commercial standard. Brand new six burner Italian stove installed, this kitchen now produces optional meals for guests each evening and is also a second kitchen for when the place is heaving.

Planning Consent:

not applicable

Business Operation

Expansion Potential:

Turn one kitchen into a Pancake Parlour, start a tour business with the perfect website, outside catering with a commercial kitchen, many plans for more income opportunities.

If we were staying in the business we would buy on or two tour buses (12 and 18 seaters) for both our market and others and use our websites: to promote these. Or we would start with leasing the buses first.

Competition / Market:

Competition consists of Albany Backpackers and the YHA, both owned by the same people. The YHA has been operating since the early 1980's and has no room for either expansion or improvement. I set up and opened the Albany Backpackers on the last day of 1989, running it for six years. The business is still going and caters more to the party hostel crowd..

Neither the two other Backpackers have any room for expansion or to create other income streams other than what already exists.

Reasons for selling:

To spend time with elderly family in Europe.

Trading hours:

Office opens at 7am and closes at 10pm, seven days a week. Check in available 24 hours. Choose your own opening hours.

One manager, ourselves, plus several helpx workers for cleaning and general maintainance.
Years established:
Opened on April 2nd 2010

Other Information

Support & training:

We are very proud of what we have achieved up to now, and want someone to take over who will extend the business and take it to the next level. Our intention, the game we are playing, is for 1849 Backpackers to be recognised as the Best Backpackers accommodation in the world. It is a success story, started from nothing, and we would love to see this success continue. 1849 Backpackers is six years old and is recognised widely as the best Backpackers in the state and one of the best in the country. The potential is unlimited.

Owner financing:
Owner financing is available. Please contact the seller for more information.
Financing available:

Open to discussion

Furniture / Fixtures value:
$150,000 (AUD) - included in the asking price
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Home based:
This business can be run from home.

Contact Information

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