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Backpacker lodge for sale turns out to be a business opportunity at the rainbow’s end

Tags: Commercial

The land and buildings housing a backpackers’ accommodation hostel in one of New Zealand’s biggest tourist destinations has been placed on the market for sale.


Rainbow Lodge backpackers sits on edge of Taupo’s central business district, and is licensed to sleep up 68 people. The lodge buildings are situated on approximately 2,866 square metres of freehold land split over two adjoining land titles zoned for high density residential use.

Rainbow Lodge’s 20-room inventory is configured to support a range of occupancies – ranging from single-sex and mixed gender bunk style dormitories and single rooms, through to stand-alone share twin and double rooms.

Adjacent to the commercial accommodation amenities is a two-bedroom owner/managers home and a one-bedroom flat which can either be let out totally separately from the backpacker inventory, or utilised as staff accommodation.

Guest services within the Rainbow Lodge backpackers business include:

• A fully-equipped kitchen with extensive food preparation benching and all crockery and cutlery

• A separate dining room

• Heavy-duty laundry facilities for washing and drying clothes.

• A TV lounge

• Off-street parking and

• A sauna.

The Rainbow Lodge backpackers land and buildings at 99 Titiraupenga Street are being marketed for sale by tender through Bayleys Taupo, with tenders closing at noon on June 27. Bayleys Taupo salesperson Gary Harwood said there was also the option to purchase the business as well as the land and buildings.

Nightly rack rates at Rainbow Lodge backpackers range from $25 for a shared dormitory through to $70 for twin and double rooms. The hostel has been operating since 1985 when it was founded by Mark and Sue Dumble.

“Rainbow Lodge backpackers is just a 500 metre from Taupo’s vibrant central business district. The Lake Taupo District is one of the country’s most visited destinations for both domestic and international tourists,” Mr Harwood said.

“There is the opportunity to purchase either the Rainbow Lodge business or the land and buildings separately. The location offers opportunities for future redevelopment.”

For guests cooking their own food on-premise, Rainbow Lodge is a a five minute stroll to both Pak’nSave and Countdown supermarkets.

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