Gold Coast capsule hostel draws mixed reviews as locals join backpacker crowd
A Gold Coast pod-style hostel pulling in $250,000 a year in rent is attracting not just backpackers and students, but also locals struggling to find a place to live.
Capsuleaccom in Southport, inspired by Japan’s capsule hotels, stacks 134 single “pods” in neat rows, each with a curtain and bunk divider. Opened in 2024, the hostel charges $48 a night or $300 a week — but with rents soaring, some locals are bunking down alongside travellers, occasionally working volunteer hours for their stay.
Owner Ian Robinson says most guests are on student or working holiday visas, using the space as a stepping stone.
“We aim to bridge that gap by offering welcoming short-to-medium term housing as they transition into life here,” Robinson said.
He admits the setup isn’t designed for crisis housing, but says they do try to help “when feasible” — though mixing homeless guests with tourists can be tricky.
“While some situations have worked well, with a positive sense of purpose and mutual respect among guests, this is not always the case. Our focus remains on creating a safe, structured environment for those transitioning into Australian life, and managing the mix of demographics requires careful consideration.”
Charity worker Karl Westwell from Agape Outreach says two homeless women in their 40s and 50s were asked to leave before the Gold Coast Marathon in July.
“It’s clean and comfortable, but crowded, cramped and certainly not cut-rate at $350 a week – that’s what one of our clients tells us she now pays for a capsule,” Westwell said.
The 1,105-square-metre Nerang Street property is now on the market, pitched as a “state-of-the-art capsule hostel” with development potential — and a steady rental return.
Jonathan Jackson, 11th August 2025
