Intrepid Travel to expand into accommodation with launch of Drifter brand

Intrepid Travel, the world’s largest adventure travel company, has today announced ambitious plans to diversify into the hotel accommodation market in a joint venture with Drifter Hospitality Group.

Marking the Melbourne-based company’s first move into the accommodation market, Intrepid Travel has created a new hotels division led by former Managing Director APAC Sarah Clark.

Brett Mitchell, Intrepid’s Chief Sales Officer, has stepped in to oversee the APAC region under his global role, as a part of the move.

The expansion is being driven by Drifter Hospitality Group raising an initial fund of $75 million to acquire and reposition hotels across Australia and New Zealand with the objective to grow the portfolio to $500 million over time.

Drifter Hospitality Group was established by Ryan Sanders as Chief Executive with Hugh Stephenson and Joshua Hunt as Co-founders. Intrepid Travel is a 50/50 joint venture partner with Drifter and the cornerstone investor in the fund, which launches publicly this week.

Intrepid Travel and Drifter’s portfolio of sustainable owner-operated premium hybrid hotels will be located in prime urban locations. There will initially be eight hotels across Australia and New Zealand in the next three years, growing to 15 properties by 2025.

The group’s first new hotels will open in Auckland, Wellington and Christchurch in 2022, branded as ‘Drifter - an Intrepid Hotel’.

The group plans to take the concept globally, with targeted assets being a combination of repositioned hotels, hostels, re-purposed commercial sites and new builds.

Hybrid hotels offer flexible room options (including private suites and shared rooms), located in popular city neighbourhoods with exciting communal areas and unique cultural and dining offerings. The concept is popular with millennials, who increasingly seek experiential accommodation. Research in 2019 by commercial real estate company CBRE found that millennials are likely to spend more on hotels that Baby Boomers or Gen X, but that they seek a transformational and shareable experiences, such as the ones offered by the hybrid hotel concept.

Intrepid Travel Chief Executive, James Thornton explained “we’ve long recognised the potential to bring our knowledge of sustainable experience-rich travel and the international tourism market - particularly solo and millennial travellers - to the hotel

“With Drifter, we’ll create truly unique hotels that travellers will love and the opportunity to grow across the region is profound.”

Clark, Intrepid Travel’s newly appointed Managing Director Hotels, says the hybrid hotel concept will offer local and international guests a new type of experiential hotel stay.

Clark stated “I couldn’t be more excited to be expanding into the accommodation vertical, with Drifter being our first launch partnership.

“We’ll offer high-quality, unique accommodation and sustainable experiences in the heart of buzzing urban CBDs and neighbourhoods. With travel reopening, people looking to reconnect, and the opportunity presented with city real estate, it’s the perfect moment to embark on this expansion phase.”

Intrepid Travel will bring its expertise in decarbonisation to ensure the highest standards of sustainability across the hotel group. The properties will be carbon neutral and sustainable practices will be implemented across design, services, amenities, utilities and wider operational practices.

Over the past 32 years, Intrepid has grown from one of Australia’s most successful travel companies into an internationally recognised travel brand. Fast Company named Intrepid as one of the Most Innovative Companies in 2021.

Prior to pandemic lockdowns, the company carried 470,000 customers in 2019, booking more than one million hotel nights a year.

Image: Intrepid Travel’s new  hotels division already has five hotels via the incorporation of Haka, including Haka Queenstown.