Leisure Accommodation Collective chief executive Luke Moran is looking forward to 2026 as its Drifter brand prepares to open at two new locations in New Zealand.
Leisure Accommodation Collective chief executive Luke Moran is looking forward to 2026 as its Drifter brand prepares to open at two new locations in New Zealand.
Drifter Hotels-Hostels is set for a busy 2026 as the growing tourism accommodation provider prepares to open two new locations in New Zealand with A$20 million ($22m) of investment behind them.
Leisure Accommodation Collective (LA Co), which owns Drifter, plans to open its Auckland and Wellington sites over the comingyear, bringing the hybrid accommodation style to more of the country’s largest centres.
The business currently owns 11 assets across Australia and New Zealand, with its one New Zealand location in Christchurch.
That site opened in 2024, just a few blocks away from the soon-to-open Te Kaha One New Zealand Stadium.
The new locations will each have about A$10m spent on retrofitting investments, with Wellington slated for a first quarter 2026 opening and Auckland later that year.
Wellington will be able to accommodate 300 travellers, while the Auckland site will have a capacity of more than 400.
Group chief executive Luke Moran said the brand is “pretty bullish” on growing here.
“It’s probably in a bit of a lull at the moment, but I’m still very positive on the New Zealand market outlook as to the longer-term growth and viability,” he said.
“This sector is super important to New Zealand. I was just reading an article around it being ranked No 1 globally as the adventure travel capital of the world. So I’d probably like to see a little bit more marketing focused on that from Tourism NZ and get back to some of that focus because it really is a good news story to tell.”
A private king room at the Drifter Christchurch, which opened in 2024.
The group and its two brands, Drifter and The Village, are tapping into the growing hostel accommodation market, with Drifter offering a hybrid mix of private and shared rooms.
Moran said the accommodation type doesn’t necessarily have the same growth pattern as a hotel from an industry and investment perspective.
However, it does present the opportunity to elevate the offering and invest in a market commonly known for cheaper alternatives.
“It’s good for everyone, to be honest. New and better product comes in and we can start to change the paradigm and dialogue of what used to be Jager bombs and the like and turn it into something that people turn up and they actually have a great experience.”
The sector is getting more competitive as other players enter the market. Drifter is up against the likes of Lylo, owned by Australian hotel and hospitality group EVT, and Haka House, which is co-owned by Thai company GCP Hospitality and Haka Tourism Group.
Moran said location is important in selecting sites, which is exemplified by its Christchurch offering.
The $683m stadium will be opening its doors in April 2026 and is set to host Super Rugby Pacific‘s Super Round in May next year with seating for 30,000.
“The economic benefit out of that is really significant. They have put it in the heart of the city, walking distance from the CBD. I think it’s a bit game-changing for New Zealand and we’re very lucky to have it on our doorstep in Christchurch.”
Drifter’s new New Zealand locations are no different. The Wellington site is on Cambridge Tce and features ocean views, while the Auckland location is opposite the City Rail Link’s new Te Waihorotiu Station on Wellesley St.
Drifter features hybrid accommodation options, from private hotel suites to shared bunk options like this one in Drifter Christchurch.
Moran said it was also planning to establish a Queenstown location before 2030.
“That probably would round out our investment at this stage into New Zealand of having assets in core locations.
“If I could get something in Lake Tekapo and a few other places along the way, we’d certainly jump at the chance, but Queenstown is one of the most desirable locations in the world.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
