Court battle looms for Noosa backpacker plans
A Queensland council faces a court challenge after rejecting plans for a new backpackers hostel near the heart of a tourist hub.
Noosa faces an accommodation shake-up as developers push for budget backpacker hostels despite council resistance, with one case now heading to court.
The property owners Stephni and Mathew Haydok submitted plans to Noosa Council earlier this year to transform a three-storey short-term accommodation apartment block into a 48-bed backpackers.
According to an appeal notice filed in the Planning and Environment Court earlier this month, the council had rejected the development application citing overdevelopment.
The proposal relates to a property at 17 Russell St, Noosaville, which currently can accommodate up to 18 people, the court documents stated.
The Noosa Council rejected the application on October 23, 2025.
According to the rejection notice, the council considered the plans to be an “overdevelopment” of the site.
“The scale of the development is not consistent with structures on adjoining or nearby land and is likely to dominate and adversely impact the surrounding residential amenity,” the documents stated.
However, the appeal notice argued a need for a development of a larger scale.
“There is an economic and planning need for the form of the proposed short-term accommodation within the Noosa catchment which features a marked short fall to meet demand,” the documents stated.
The appeal comes after new plans for a large-scale backpackers were submitted last month.
The developer, The Social Hotel Group, submitted a development application to the Noosa Council in October, regarding renovations to the existing commercial building at 12 Thomas St, Noosaville.
The town planning report stated the site currently held one short term accommodation unit located above a pizza restaurant.
“Commercial two storey development consisting of food and drink outlet on the ground level and accommodation unit on the first level,” the planning report stated.
Property data shows the site was last listed for sale in November 2021, welcoming offers over $3.1m, but ultimately did not sell.
According to the plans, The Social Hotel Group will seek to build an extension on the current timber and tin structure, reaching 12m in height.
The plans show a total of nine dorm rooms would accommodate 95 “pod-style” beds to boost the region’s short term accommodation offerings.
Noosa Council and Ms Haydok have both been contacted for comment by this publication.
