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This new Melbourne stay pairs hotel comforts with a hostel price tag

The Little Drifter property getting a very big makeover.

Melbourne backpacker Little Drifter is undergoing a major redevelopment, slated to be Drifter’s largest property yet when it reopens in 2027. The new 775-bed stay will embody the Australian brand’s signature hotel-hostel hybrid approach, promising guests the best of both worlds.

The transformation of Little Drifter

Originally opened as an affordable base for backpackers in the heart of Melbourne, Little Drifter has long attracted guests with its prime location, social energy and seriously good prices.

Drifter Melbourne, Victoria
Once open, Drifter Melbourne will be the brand’s biggest property to date.

But in a landmark change of pace, the property is now being completely revamped as part of Drifter’s huge Trans-Tasman expansion. Designed in collaboration with CTRL Space and Studio Y, the pre-existing space will soon become a full-scale Drifter property – and the largest of its kind to date.

It’s the perfect embodiment of the brand’s core goal – to fill the gap between traditional hotels and hostels without compromising on comfort, privacy or value.

The model has already demonstrated a strong global appeal at flagship properties like Drifter Byron Bay and Drifter Christchurch, where international guests account for roughly 80 per cent of occupancy at both.

Drifter Melbourne, Victoria
Future guests can enjoy hotel-style amenities, including a sleek wellness space.

“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," says Hugh Stephenson, co-founder and co-CEO of Drifter.

“Melbourne 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," he adds.

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The opening of Drifter Melbourne

Expected to open in Q3 of 2027, Drifter Melbourne will comprise a whopping 775 beds across over 100 keys – more than a sixfold increase on its previous iteration’s 118.

It follows the introduction of Drifter’s Dream Pods – a suite of 96 custom-designed sleeping pods set for completion in late 2026. Each space will come with a bed, secure storage, a dedicated clothes rack, ambient lighting and multiple charging ports, delivering 30 per cent more space than a traditional bunk.

Drifter Melbourne, Victoria
The new Drifter Dream Pods will be available for guests to book later this year.

Rounding out the revamp the following year, Drifter Melbourne will feature a new lobby, public bar, wellness facilities, co-working spaces and the Rambler Social Club, conceptualised by We Are Humble. The buzzy communal space brings together all-day dining, late-night vinyl, DJs, karaoke and pizza.

A year-round program spanning music, art and community events will reflect Drifter’s commitment to creating stays that are as much about connection as accommodation – bringing a new kind of experience to Melbourne’s hotel scene.

Drifter Melbourne, Victoria
Get amongst Drifter’s buzzy social scene at the public bar.

By pairing hotel-style hallmarks like privacy and room typology with its signature social energy and cultural calendar, Drifter caters to every type of traveller, from backpackers and digital nomads to families and business guests.

“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."

Address: 167 Franklin Street, Melbourne

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Taylah Darnell
Taylah Darnell is Australian Traveller's Writer & Producer. She has been passionate about writing since she learnt to read, spending many hours either lost in the pages of books or attempting to write her own. This life-long love of words inspired her to study a Bachelor of Communication majoring in Creative Writing at the University of Technology Sydney, where she completed two editorial internships. She began her full-time career in publishing at Ocean Media before scoring her dream job with Australian Traveller. Now as Writer & Producer, Taylah passionately works across both digital platforms and print titles. When she's not wielding a red pen over magazine proofs, you can find Taylah among the aisles of a second-hand bookshop, following a good nature trail or cheering on her EPL team at 3am. While she's keen to check out places like Scotland and North America, her favourite place to explore will always be her homeland.
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8 experiences to get the most out of Victoria’s Great Ocean Road

    Louis Costello Louis Costello
    Beyond the winding bitumen and coastal views lies another side to Victoria’s most famous route.

    There’s something hypnotic about this stretch of Victoria’s coast. Maybe it’s the way the road hugs the ocean so tightly, or how the cliffs catch the sun in colours you can’t name. Or, for local Victorians who drove this route as kids, maybe it’s the memories of winding through the impossibly tall trees as they seemingly guide you on your journey like wooden guardian angels. Most travellers know it for the 12 Apostles, but there are plenty of alternate experiences on the Great Ocean Road equally as worthy of your time.

    So, next time you’re in that neck of the woods, park that car, stretch those legs and try these experiences.

    1. Discover living culture at Budj Bim

    Budj Bim Cultural Landscape Tourism
    Walk across the world’s oldest known aquaculture system. (Image: Visit Victoria)

    Breakaway Creek’s Budj Bim Cultural Landscape is a masterclass in educational storytelling. Join a guided tour with Budj Bim Cultural Landscape Tourism to walk across the world’s oldest known aquaculture system, where the Gunditjmara people built sophisticated eel traps and stone channels more than 6,000 years ago.

    Budj Bim’s aquaculture system predates Egypt’s pyramids by roughly 2,000 years, making it one of the oldest examples of human engineering on Earth. If that’s not enough to get your history-loving family members involved in this road trip, we’re out of ideas.

    2. Unwind in the hot springs at Warnambool

    woman relaxing at Deep Blue Hot Springs
    Let mineral-rich water heal you.

    If your legs need a break after a long drive, Deep Blue Hot Springs is your remedy. The geothermal pools sit just metres from the coastline, filled with mineral-rich water that bubbles up from deep underground. Move between open-air baths, waterfall pools and quiet zones made for meditation.

    The water in Deep Blue’s geothermal pools comes from an ancient aquifer nearly 850 metres below the Earth’s surface, which, in non-scientific terms, means it’s far more likely to have healing properties than the mineral water you’d find at the supermarket.

    3. Take to the air at Princetown

    12 Apostles Helicopters flight alternate experiences on the Great Ocean Road
    See an icon from a different view.

    You may have seen the Twelve Apostles from the trusty viewing platform, but a helicopter flight with 12 Apostles Helicopters shows you just how sprawling and rugged this coastline really is.

    The trip covers everything from Port Campbell to London Bridge (not to be confused with the UK’s own), giving you a rare chance to watch waves carving the limestone cliffs from above. It’s worth noting that the limestone stacks of the Twelve Apostles are said to erode by roughly two centimetres each year, so the longer you leave it, the less of the Apostles you’ll see.

    4. Step into the past at Flagstaff Hill

    Flagstaff Hill Maritime Village and Museum
    Visit a time of yore.

    Continue the tour through Warnambool at Flagstaff Hill Maritime Village and Museum, a recreated 19th-century port town. Hear stories from the days when shipwrecks were as common as seagulls, with an astounding 180 ships believed to have sunk along the Shipwreck Coast in less than five years.

    The night show, complete with lights, sound, and sea spray, brings the coastline’s most dramatic stories to life.

    If you’re staying the night, Simon’s Waterfront offers relaxed dining with fresh local seafood and oceanfront views. Order the catch of the day and toast to the sailors who never made it ashore.

    5. Learn to surf in Torquay, Lorne, or Anglesea

    kid having a lesson with Go Ride A Wave
    Learn how to hang 10. (Image: Visit Victoria)

    Whether you’ve surfed before or can barely stand on a board, Go Ride A Wave will have you upright in no time. Torquay’s calm beaches are ideal for first-timers, while Lorne and Anglesea bring a bit more energy for those unafraid to get dunked.

    Bells Beach, just down the road from Torquay, has even hosted the world’s longest-running professional surfing competition since 1962. So, for those eager to have a gander at pros using surfboards like they’re an additional appendage, the competition usually runs sometime in autumn.

    6. Tackle the trails in Forrest

    Barwon Flow Trails Otways Flow MTB
    Hire a bike and explore MTB trails through the Otways.

    Forrest is a haven for mountain bikers thanks to an expansive network of trails through stunning natural scenery. The Forrest trail network has almost 100 kilometres of singletrack across 36 trails, so there’s something for every level of rider. That’s including more than 60 kilometres of purpose-built mountain bike trails winding through the Otways’ dense forest. Cycle through ancient myrtle beech trees and towering tree ferns, with smaller ferns and soft mosses forming a carpet at your feet.

    Hire a bike from Forrest MTB Hire and take your pick from easy, scenic rides to more challenging singletracks, such as Red Carpet or Rollercoaster.

    7. See wildlife up close in Apollo Bay

    bush rat on Wildlife Wonders tour
    Get help spotting the locals. (Image: Doug Gimsey)

    If spotting koalas and kangaroos in the wild feels like winning the lottery, Wildlife Wonders gives you guaranteed sightings without cages or crowds. Every visit to the sanctuary helps fund the Conservation Ecology Centre which supports endangered species across the Otways, so your business is appreciated by humans and animals alike.

    The guided walk takes you through protected Otways habitat where you might spot potoroos (or joey lookalikes for those unfamiliar with a potoroo), wallabies, and sleepy koalas lounging in the trees.

    8. Visit the Cape Otway Lightstation

    Cape Otway Lightstation
    Delve into the tales of Cape Otway Lightstation.

    Towering over the sea on a cliff above the Southern Ocean, Cape Otway Lightstation has been guiding ships since 1848. Before the lighthouse was built, Cape Otway was one of the most treacherous points on the Victorian coast, with dozens of shipwrecks occurring in its surrounding waters. Pick the right day, and you may bump into a local willing to tell you about the wreck of Eric the Red.

    While at the Cape Otway Lightstation, explore the keeper’s quarters, walk the coastal trails, and take in views that only stop short at the horizon.

    And no, contrary to popular belief, the Round the Twist lighthouse is actually located in Split Point, just shy of two hours in the direction of Melbourne. Nothing’s stopping you from embarking on a lighthouse crawl, though.

    Plan your next no-stone-unturned journey along this iconic Aussie road at visitgreatoceanroad.org.au.