Buried treasure: Outback motel where opals still shine
Ever dreamed of owning a motel carved into an opal mine, with 65% occupancy and growth potential?
Only in Coober Pedy can you check into a motel and find yourself sleeping in a former opal mine. Now, one of Australia’s most unusual accommodation businesses, the Coober Pedy Experience Motel, is on the market for $2.5 million.
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From mine shafts to motel rooms
Once hand‑dug shafts from 1918 to the 1960s, these sandstone tunnels were transformed in 1990 into a truly unique lodging. The 16 spacious underground ensuite rooms were carved entirely from the original opal mine, with seams of opal still visible in the walls.
Guests stay among hidden caves, historical images and the peaceful ambience of an underground world filled with natural history and wonder.
Cool comfort below ground
The property operated under Choice Hotels’ Comfort Inn banner before Hector Xu purchased it around 2020 and rebranded it to its current name. Today it runs at a steady 65 percent occupancy, with nine more rooms already carved out and ready to be fitted.
“This is a tree change opportunity like no other,” says ResortBrokers South Australia agent Kelli Crouch, who is handling the sale. “It would suit an owner‑occupier looking for a lifestyle change with a motel that has been a rock‑solid accommodation business for more than 30 years.
“As locals will tell you, Coober Pedy can get very hot. But you would never know it in the motel. It is a comfortable temperature all year round thanks to the natural insulation of being underground.”
Currently run under management, the property offers significant upside for hands‑on operators looking to take full advantage of its potential.
Spaces to live and gather
The property also includes one of Coober Pedy’s only underground function rooms, seating up to 80 guests.
An adjacent two‑bedroom dugout residence, complete with lounge, kitchen and dining areas, enhances both operational efficiency and lifestyle for the purchaser.
Bonus perks
More than just a place to stay, the motel has been recognised with a Choice Hotels Gold Award in 2017. It sits on a 2530‑square‑metre freehold site, generates passive income from an NRMA electric vehicle charging station, and is within walking distance of attractions including Old Timers Mine, a local museum and the Big Winch lookout.
From the peaceful tunnels to the quirky charm of stays among mining heritage, the motel offers flexibility for families, couples, groups or business travellers, while the onsite opal and gift shop offers yet another link to the town’s dazzling past.
Stories guests take home
Guests do not just stay here, they leave with stories. They might whisper about sleeping in a sandstone tunnel sparkling with gemstone dust, or how the heat outside melted away underground. For three decades, this place has drawn backpackers, road-trippers and grey nomads with its curious charm.
Travel is shifting, and visitors are chasing unusual, memorable experiences. And where better to do that than down under the red desert sands, in a motel that blends history, comfort and outback resilience in every corridor.
Sold by the experts
The sale is being handled by ResortBrokers, Australia’s long-established specialist agency for accommodation and hospitality businesses. Backed by four decades of experience, they present the Coober Pedy Experience Motel as more than a property. It is a rare chance to own an outback icon.
Read about Australia’s motel revival HERE
Find the Coober Pedy Experience Motel listing HERE
