Australia and New Zealand’s largest hotel-hostel hybrid platform, Drifter, is set to open three new properties to meet growing demand in the sector.

The Australian-founded hospitality brand is poised for a major Trans-Tasman expansion, with new properties opening in Wellington and Auckland ahead of the launch of its largest Drifter to date in Melbourne in 2027.

First off the ranks is 287-bed Drifter Wellington, slated to open in Q4 2026, transforming the city’s former Post Office in Te Aro into a 51-room hybrid hotel-hostel. An 80-room Drifter Auckland with 414 beds will follow in Q2 2027, and in Q3 2027, the existing 118-room Little Drifter in Melbourne will be transformed to unveil the brand’s largest Drifter property at 775 beds.

The three openings mark the next stage of growth for the business, which currently includes 11 properties and approximately 3,500 beds across Australia and New Zealand.

Combining boutique private rooms with shared accommodation, food and beverage, wellness and co-working spaces, the business has demonstrated strong demand from international guests, with its flagship properties in Christchurch and Byron Bay noting that 80 to 85% of occupancy was from overseas source markets.

Women account for 60% of guests across both properties year-to-date, and in Christchurch, private rooms generate 46% of room revenue, demonstrating strong demand for the flexibility of the hybrid model.

“What we’ve learned from Christchurch and Byron Bay is that travellers are looking for something different. They want inspiring spaces, flexibility in how they stay, and experiences that feel connected to the city around them,” Drifter Co-Founder and Co-CEO Hugh Stephenson said.

“That’s what makes Wellington, Auckland and Melbourne such exciting opportunities. Each city has its own creative energy, and our focus is on building Drifter experiences that reflect and celebrate that local culture rather than applying the same formula everywhere. Melbourne, in particular, feels like a natural home for the brand. Few cities do design, music, food and culture quite like Melbourne, and this project will be our boldest expression of Drifter yet.”

Drifter’s expansion will focus on design and adaptive reuse, with all three properties transforming existing buildings. Drifter is collaborating with Trans-Tasman interior design studio CTRL Space, the team behind Drifter Christchurch, to evolve the brand’s design language across Wellington, Auckland and Melbourne.

Trans-Tasman network growth

The new openings build on Drifter’s existing network across Australia and New Zealand, including flagship hybrid hotels Drifter Christchurch and Drifter Byron Bay, alongside Little Drifter properties across Sydney, Canberra, Cairns and Melbourne.

Stephenson said the next phase will continue to focus on gateway cities and leisure destinations, and rely on repositioning existing buildings.

“What’s exciting for us is that we’ve proven this isn’t a niche product for one type of traveller. The same property can work for someone travelling solo, a couple wanting a private room, a group of friends, someone working remotely or someone in town for business.

“We think the next generation of accommodation will be much less defined by traditional labels. People are increasingly looking for places that give them quality and value, but also a genuine connection to the city and the people around them. That’s the space Drifter is building for.”