Local backpacker developer and operator Bounce has struck a deal to take over the operations of three former Selina hostels in Melbourne and Brisbane and is in talks to add a fourth property on Magnetic Island near Townsville to its portfolio.

The deal, which includes a debt for equity swap with private lender Dorado Capital, will instantly double the existing Bounce network, which operates backpacker-style accommodation at Noosa, Cairns and Airlie Beach. Bounce is also developing a new 460-bed “hybrid hostel” at Budds Beach, near Surfers Paradise on the Gold Coast.