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Drifter has announced plans to open its biggest property here in Melbourne – complete with a co-working space, bar and super social 'leisure club'

Melbourne’s hotel scene has been leaning on the luxe side recently, but the Victorian capital is about to welcome a major new addition that’s a lot more budget-friendly, but still with boutique creds. The forward-thinking, hyper stylish Australian hospitality brand Drifter has just announced plans to open its biggest property yet here in Melbs – here’s what we know so far.
The new Drifter Melbourne is slated to open in Q3 2027, transforming the existing 118-room Little Drifter at 167 Franklin Street into a sprawling 775-bed hotel-hostel hybrid. It will be the largest property in Drifter’s growing Trans-Tasman portfolio, and it spells exciting things for affordable staycations in the city.
Rather than making travellers choose between a traditional (often pricey) hotel and a backpacker hostel, Drifter combines private hotel-style rooms with shared accommodation, while also serving up wellness facilities, co-working spaces and cultural programming. Without sounding like an ad, it is a pretty smart solution to the great Gen Z travel conundrum – how to score an affordable, social experience without sacrificing the good life.
According to the Drifter team, the Melbourne outpost is set to lean heavily into the city’s creative side. The brand says its design will draw on Melbourne’s laneway culture, creative subcultures and layered urban character, with local design studio Studio Y and experience agency We Are Humble joining Drifter’s longstanding design collaborators CTRL Space.
The new property will feature a Rambler Public Bar and Social Club, serving food and drinks throughout the day before switching gears with late-night vinyl, DJs, karaoke and pizza. There’ll also be a podcast studio, co-working spaces, wellness facilities and a “Leisure Club”.
A year-round program of music, art and community events will round things out, with the idea being that the property functions as a social and cultural space as much as somewhere to sleep.
“Melbourne, in particular, feels like a natural home for the brand,” says Drifter co-founder and co-CEO Hugh Stephenson. “Few cities do design, music, food and culture quite like Melbourne, and this project will be our boldest expression of Drifter yet.”
Further details on room rates, room types, food and drink offerings and programming are expected to be announced ahead of the 2027 opening. You can keep tabs over here.
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