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.
His immediate priorities were catching up on maintenance and getting an understanding of how the hostel operated; longer term he hoped to build up business in the off-season, for example by attracting school and sport groups.
He also hoped to change the perception of hostels, which many people associated with backpackers sleeping in dorms. Rooms at the Paihia YHA included singles, doubles and twins, all with en-suite bathrooms, he said.
YHA chief executive Mark Wells said partnerships with independent operators such as the Larsens would allow the organisation to maintain a presence across New Zealand. It also allowed the YHA to make better use of its capital and created business opportunities for operators who saw the advantages of operating under the YHA brand as part of an international network.
"We're pleased to welcome Andy and Tracey into the YHA network. They have a strong commitment to the Bay of Islands and a wealth of experience in tourism," he said.
Mr Larsen has worked for more than 30 years in the service industry, including several general manager positions at hotels and resorts in New Zealand, Canada, Fiji and the Cook Islands. He has been the general manager of Paihia's Beachcomber Resort and, most recently, deputy chief executive of the Waitangi National Trust for eight years. Mrs Larsen has operated a successful bed and breakfast.
YHA New Zealand has 45 hostels across the country.
The Paihia hostel has 55 beds, a TV room, lounge, kitchen, covered outdoor area with barbecue, and a laundry.
Whangarei's YHA hostel also went on the market last year. YHA hostels in Kaitaia and Opononi closed down some years ago.