Drifter picks up pace

Australian-founded hospitality brand Drifter is embarking on a major trans-Tasman expansion, with new openings planned for Wellington, Auckland and Melbourne.

After building a portfolio of 11 properties and about 3500 beds across Australia and New Zealand in less than four years, the brand is doubling down on an accommodation model that sits somewhere between an upscale hostel and a full-blown hotel.

The first cab off the rank will be Drifter Wellington, due to open later this year inside the city’s former post office in Te Aro. The 51-room property will have 287 beds spread across private rooms, bunk rooms and two custom Drifter Dream Pod rooms.

There will also be a Rambler public bar, a social kitchen, co-working spaces, and a leisure club with a sauna and wellness classes — giving you some indication of just how far the humble hostel has come.

Auckland will follow in the second quarter of 2027, with an 80-room, 414-bed property in the heart of the city. It will follow a similar formula, mixing private and shared accommodation with food, drinks, wellness and communal spaces.

Perhaps the biggest move comes later next year in Melbourne, where the existing 118-room Little Drifter on Franklin Street will be transformed into the brand’s largest property yet, with 775 beds.

The Melbourne flagship will lean heavily into the city’s cultural credentials, with late-night vinyl, DJs, karaoke and pizza joining a podcast studio, co-working spaces, wellness facilities and a year-round program of music, art and community events.

Drifter co-founder and co-chief executive Hugh Stephenson says the company has found travellers are increasingly looking beyond conventional accommodation categories.

“What we’ve learned from Christchurch and Byron Bay is that travellers are looking for something different,” he says.

“They want inspiring spaces, flexibility in how they stay, and experiences that feel connected to the city around them.”

And there certainly appears to be an appetite for it. International travellers already account for between 80 and 85 per cent of guests at Drifter’s Christchurch and Byron Bay flagships, while women make up 60 per cent of guests at the two properties this year.

With all three new properties repurposing existing buildings rather than starting from scratch, Drifter’s expansion is another sign the once-clear line between hotels and hostels is becoming increasingly blurred.