The Little Drifter property getting a very big makeover.

Melbourne backpacker Little Drifter is undergoing a major redevelopment, slated to be Drifter’s largest property yet when it reopens in 2027. The new 775-bed stay will embody the Australian brand’s signature hotel-hostel hybrid approach, promising guests the best of both worlds.

The transformation of Little Drifter

Originally opened as an affordable base for backpackers in the heart of Melbourne, Little Drifter has long attracted guests with its prime location, social energy and seriously good prices.

But in a landmark change of pace, the property is now being completely revamped as part of Drifter’s huge Trans-Tasman expansion. Designed in collaboration with CTRL Space and Studio Y, the pre-existing space will soon become a full-scale Drifter property – and the largest of its kind to date.

It’s the perfect embodiment of the brand’s core goal – to fill the gap between traditional hotels and hostels without compromising on comfort, privacy or value.

The model has already demonstrated a strong global appeal at flagship properties like Drifter Byron Bay and Drifter Christchurch, where international guests account for roughly 80 per cent of occupancy at both.

“What we’ve learned from Christchurch and Byron Bay is that travellers are looking for something different. They want inspiring spaces, flexibility in how they stay, and experiences that feel connected to the city around them," says Hugh Stephenson, co-founder and co-CEO of Drifter.

“Melbourne feels like a natural home for the brand. Few cities do design, music, food and culture quite like Melbourne, and this project will be our boldest expression of Drifter yet," he adds.

The opening of Drifter Melbourne

Expected to open in Q3 of 2027, Drifter Melbourne will comprise a whopping 775 beds across over 100 keys – more than a sixfold increase on its previous iteration’s 118.

It follows the introduction of Drifter’s Dream Pods – a suite of 96 custom-designed sleeping pods set for completion in late 2026. Each space will come with a bed, secure storage, a dedicated clothes rack, ambient lighting and multiple charging ports, delivering 30 per cent more space than a traditional bunk.

Rounding out the revamp the following year, Drifter Melbourne will feature a new lobby, public bar, wellness facilities, co-working spaces and the Rambler Social Club, conceptualised by We Are Humble. The buzzy communal space brings together all-day dining, late-night vinyl, DJs, karaoke and pizza.

A year-round program spanning music, art and community events will reflect Drifter’s commitment to creating stays that are as much about connection as accommodation – bringing a new kind of experience to Melbourne’s hotel scene.

By pairing hotel-style hallmarks like privacy and room typology with its signature social energy and cultural calendar, Drifter caters to every type of traveller, from backpackers and digital nomads to families and business guests.

“What’s exciting for us is that we’ve proven this isn’t a niche product for one type of traveller. The same property can work for someone travelling solo, a couple wanting a private room, a group of friends, someone working remotely or someone in town for business.

“We think the next generation of accommodation will be much less defined by traditional labels. People are increasingly looking for places that give them quality and value, but also a genuine connection to the city and the people around them. That’s the space Drifter is building for."

Address: 167 Franklin Street, Melbourne