The national body had taken over administration about six years ago.
"To see it all go with no replacement hostel ... we are very sad," he said.
Mr Whalley said the YHA seemed to be moving away from modest accommodation in the regions, instead focusing on financing larger properties in the metropolitan areas. The sale meant the loss of a valuable property in an excellent location and would impact the local economy - the hostel attracted about 3500 visitors a year even in recession, and about 5000 pre-recession.
CEO Mr Wells said the association was committed to ensuring the YHA had a presence in locations such as Whangarei, "albeit on a different basis". The decision to sell was part of a drive to achieve a YHA hostel network that was a mix of directly owned hostels and others that were independently owned.
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