Accor-founded Base Backpacker Group takes over major hostel in Sydney

The Accor-founded Base Backpacker Group has made its most strategic addition to date with the takeover of a major hostel in Sydney, which will be converted into base's first Sydney hostel after an extensive refurbishment.

Base has acquired the large Sydney CBD hostel, Wanderers On Kent, and took over the operations on 5th July. This is the ninth luxury hostel to be opened by the Group since December 03 with a further four under construction in Australia.

The Wanderers is housed in a heritage building and is ideally located in the centre, close to all forms of transport and entertainment areas such as Darling Harbour and Haymarket. The hostel has 326 beds and features a bar, café, guest laundry, tour and work agency, guest lounges and kitchens.

The property will undergo an extensive refurbishment to bring it into line with the Base philosophy.

In addition, Base has leased the next door building, 469 Kent Street, which will be converted to offer additional ensuite guest rooms, a new ground floor bar and restaurant. This second property will be open within 12 months.

Base Sydney will feature the Sanctuary floor, an upmarket girls-only zone which has proved to be a big attraction at Base properties in New Zealand, Melbourne and Townsville. This is a direct response to the growing number of single women who are leaving home to experience the adventures of global backpacking.

Mr Graeme Warring, CEO of Base Backpackers says he sees the acquisition of this Sydney property as an opportunity to really gain some traction in the Australian market and repeat the group's success in New Zealand where an occupancy rate of more than 80% has been achieved.

"Base is receiving international recognition for our extremely high standards and the innovative way we are approaching the market. We have set new benchmarks for the discerning backpacker market," said Warring.

"Our rates remain at a low $25.00 per night however, we are attracting a broader age bracket of travellers who are looking for the backpacking experience but still like their luxuries.

"We plan to open 25 Base Backpacker Hostels in the three years in Australia and New Zealand. We have a minimum of nine hostels established and running with a further five sites under construction by the end of '05 in Australia and New Zealand, so we are well underway to achieving our goals.

"Base Magnetic Island, located on the beach front at Nellie Bay and famous for its full moon parties, will be opened in August 2004. This facility will provide the fun and adventure of Ibiza with an Australian flavour. A 330 bed facility in the Melbourne CBD will be opened in December 04."

Mr Warring said another innovation of Base Backpackers was that it had developed packages that could be sold by travel agents. The Base Jumping Packages is a voucher-system programme that is discounted to travel agents for selling either individually or as part of a package.

The packages are for 5 or 10 nights and include value-added extras such as free internet as well as discounts at Base hostel. The vouchers can be used across the Base hostel network in Australia and New Zealand. A 5 night package is available for A$109 (instead of A$125 if purchased individually), and a 10 night package is available for A$195 (instead of A$250 individually).

The vouchers are completely flexible so travellers don't need to commit to dates until they want to make use of them.

"Because we can offer a network of hostels in key locations across Australia and New Zealand, we believe the voucher system will be very popular," said Warring.

"For travel agents they can sell the vouchers at the full rate value or at a small discount and make up to 20% profit, while still offering added extras such as internet and food and bar discounts. With the this new form of quality backpacking attracting a wider and more discerning audience, we think that travel agents - particularly those who specialise in youth travel - will find base a very attractive product to sell."