"Two budget accommodation groups have combined in an $80 million merger as backpacker accommodation becomes the latest industry to face consolidation.
Accommodation groups Beyond Backpackers and Base Backpackers have announced an equal merger to create a chain of 11 hostels in New Zealand and Australia.
The new group will be labelled under the Base Backpackers brand and will be placed at the top end of the backpacker market, focusing on twin-share and ensuite rooms rather than the traditional dormitory-style accommodation...
The combined group plans to develop or buy existing hostels along the eastern seaboard, including Cairns, Airlie Beach, Brisbane and Byron Bay.
The group will also consider opening hostels in parts of Southeast Asia."
You can read the full story from an Australian newspaper here.
New Zealand news story here:
"The merger of Base Backpackers and Beyond Backpackers will result in Australasia's biggest privately held hostel chain, with annual revenues of more than $50 million.
The new entity – known as Base – has eight hostels in New Zealand, New Zealand chief executive Campbell Shepherd said.
The group also has three Australian hostels and is on the lookout for new locations, with a new $10 million bank facility to fund acquisitions.
Base's owners include Australasian private equity investor Ironbridge Capital, hotel chain Accor Asia Pacific and Ivany Investments, along with other small shareholders. Ironbridge Capital acquired ACB Holdings – which trades as Beyond Backpackers – in June 2004 for $50 million.
Base plans to refurbish existing sites. Work will include building bars to attract patrons not necessarily staying in the hostel."