Australia and New Zealand's largest premium hostel network, Base, has purchased Brisbane's most popular and well known hostels, Palace Central and Palace Embassy. Palace Central also incorporates "The Down Under Bar", an icon of the Australian backpacker bar scene.

Operating under the auspices of the base brand, the new hostels will cement Base as the largest, privately-owned operator of quality backpacker accommodation, bars, travel outlets and job placement services in Australia and New Zealand numbering over 4100 beds, 11 bars and 34 travel outlets.

Base made its debut on the backpacking scene in 2002 with the launch of three hostels in Auckland, Rotorua and Wellington. Since then Base has gone from strength to strength, merging with the New Zealand owned Beyond Backpacker group in 2006.

Major Investors, Private Equity Firm Ironbridge and Ivany Investments, say they are "delighted with the acquisition, which further cements the Base brand as market leaders in Australasian backpacker accommodation and delivers a wealth of opportunities for travellers, staff, suppliers and business partners". Accor Asia Pacific Hotels, who originally established Base, remain minor investors.

Base operates in major gateway sites, including Sydney, Melbourne, Auckland and Christchurch with a total of ten backpacker hostels in New Zealand and now five in Australia.

After consolidating the purchase, the group intends to pursue further expansion opportunities along the east coast of Australia.

Base CEO Campbell Shepherd says, "The purchase of the Brisbane properties is a natural progression for the business and is the first step towards growing the brands presence further on the east coast of Australia.

"Enjoying the best positions in town, we consider Palace Central and Embassy an integral part of our network, given their prime location in one of the key gateway cities for Australia," says Mr Shepherd.

Palace Central and Palace Embassy will begin an extensive refurbishment to incorporate key aspects of the Base brand.

"The Down Under Bar at the Central property will be expanded to cater for a larger capacity and funky new en-suite rooms will be added to the Embassy to appeal to a broader cross section of travellers, whether they are independent or short stay domestic clients." says Mr Shepherd.

The new hostel announcement follows the completion of a $2 million renovation and upgrade of Base's flagship property in Sydney earlier this month - another significant milestone for Base. A further two hostels are scheduled to open in New Zealand within the next 12 months including Taupo (December 14th) and Wanaka (June 08).

For more information visit www.stayatbase.com

Contact:
Gary Berger
Director, Portfolio Development
Ironbridge
+61 2 92508709