The Imperial backpackers hotel is an iconic building in the heart of beautiful Hobart that turns over more than a million dollars a year in accommodation revenue.

It’s in a prime location in the heart of the Hobart CBD, and is walking distance to local amenities and attractions such as the Salamanca Markets.

But according to agent John Blacklow from Knight Frank there is a huge improvement potential for a business that is already enormously successful in the Tasmanian capital.

Mr Blacklow is marketing the Collins Street property for $5,900,000.

“It’s very good buying just for the building, let alone an accommodation business that is already doing very well,” he said.

“It's a pretty substantial building of 2776 square metres over three upper levels. At the price being asked it works out at just $2125 per square metre which is substantially less than other buildings around the Hobart city area.

“And that doesn’t include the business.

“Three strata titles are being offered for sale.”

The Imperial contains 69 rooms, plus five staff rooms and a manager’s residence.

It has accommodation for 169 guests, making it one of the largest backpacker facilities in Australia, and it contains a lounge, recreation area, multiple male and female bathroom facilities (recently refurbished) and a kitchen.

The business is operated under management, and Mr Blacklow says it has “huge growth potential”, with the implementation of social media advertising and the updating of the decor.

“The backpacker market is a perfect fit for social media advertising and promotion but there has not been a lot of that for this property,” he said.

“It doesn’t even have a proper website so the potential to improve the business is huge.

“The current owner lives in Western Australia and the building is operated totally under management, so there is a hands-off investment opportunity for potential buyers.

“It turns over more than a million dollars in accommodation, both semi-permanent and casual letting, so it is an established business with a solid reputation and track record.

“It presents a great opportunity to capitalize on the growing tourism industry in Hobart and Tasmania.”

The Apple Isle has long been a favourite holiday destination, but Australia’s smallest state recently scored a top 30 spot in The New York Times’s prestigious list of Best Places to Visit in 2024.

The list virtually guarantees flocks of travellers to each recommended destination.

The newspaper praised Tasmania for its wonderful food culture and stunning natural environment of beaches and bushland.

Tourism Tasmania CEO Sarah Clark said, while Australians had long understood the lure of Tasmania, it was a thrill to be recognised on the international stage.

She described making The New York Times list as “one of the highest accolades for a destination”.

“We couldn’t be more thrilled to be included and have so many unique experiences represented,” Ms Clark told news.com.au.

“We know Tassie has been top of mind for Australian travellers for a while and it’s great to see that now it will be on the bucket lists of international travellers as well.”