The Paihia YHA has been bought by former Waitangi National Trust deputy chief executive Andy Larsen and his wife Tracey.
The two-storey, 55-bed hostel on MacMurray Rd - around the corner from the town's Kings Rd backpacker strip - had been on the market since late last year, advertised as a freehold going concern or as a 25-year lease.
The Larsens, who took over on July 1, bought the land and buildings but opted to stay in the YHA network.
It is the second franchise agreement signed by the YHA, after Napier, as the organisation shifts towards independently owned hostels at some smaller and more isolated sites.
Mr Larsen said he wanted to stay with the YHA because it was a credible brand and part of the world's biggest budget accommodation network. He was also keen on the YHA's real-time on-line reservation system.