Drifter Will Expand Hostel Network Across Oceania by 2027
The hospitality brand plans to open new locations in Wellington and Auckland while renovating its Melbourne property.
Updated on Oct. 7, 2026 in Australia and New Zealand
Live Poll
Would you choose a hybrid hotel-hostel for your next trip instead of a traditional hotel?
Drifter, an operator of design-led hostels, announced plans to expand its presence across Australia and New Zealand. The company will open new properties in Wellington and Auckland by mid-2027 while completing a major renovation of its site in Melbourne.
Why it matters
The expansion strategy aims to capture growing demand for hybrid hotel-hostel accommodations that prioritize locally themed amenities. By transforming historic or existing city buildings, the brand seeks to integrate travelers into the local creative energy of these urban centers.
The Wellington site will feature 51 rooms, while the Auckland location on Wellesley Street West is slated for 80 rooms. The Melbourne property on Franklin Street will accommodate 775 beds upon completion of its renovation.
The players
Drifter
Drifter is a hospitality company that manages design-led, hybrid hotel-hostel properties across Australia and New Zealand.
The details
Drifter transforms existing structures into hybrid hotel-hostel properties that include locally themed bars and eateries. The renovated Melbourne facility will offer unique guest amenities such as a podcast studio, co-working facilities, and a leisure club.
Timeline
Drifter began operating in Australia and New Zealand in 2024.
Drifter Wellington is expected to open in Q1 2027.
Drifter Auckland is expected to open in Q2 2027.
The Melbourne property renovation is set for completion in the second half of 2027.
Travel Outlook
This development follows a broader industry move toward hybrid boutique hostel accommodations that cater to modern travelers seeking both social spaces and private rooms. The brand's expansion into these major urban hubs positions it within the competitive landscape of regional travel.
Travelers planning trips to Wellington, Auckland, or Melbourne in late 2027 should monitor the brand's website for specific booking availability. Those seeking accommodation with integrated co-working spaces and podcast studios will find new options in these major city centers.
The takeaway
The trend of converting historic buildings into functional, design-focused lodging offers travelers a way to engage more deeply with a city's local culture. Guests looking for community-driven environments should prioritize properties that offer dedicated shared amenities like co-working spaces.
Further reading
For more information on the travel landscape in this region, visit the Australia and New Zealand section.
Live Poll
Would you choose a hybrid hotel-hostel for your next trip instead of a traditional hotel?
