About Us

The Palace is a unique hostel perched on a small hill amongst the trees in central Nelson. Set in a classic Edwardian villa built in the early 1900s, with its eclectic décor and laid-back atmosphere, this is a place where you can escape the bustle and truly feel at home.

The Palace Backpackers Hostel

The Palace offers a one-of-a-kind experience that will not break your budget. Providing free tea, coffee and sugar throughout the day, along with a simple breakfast in the morning, you will have everything you need for a comfortable stay. 

Beds are all single beds – no bunks! All bedding is provided and towels are available for $2 on request. 

Luggage storage is available if you would like to explore pre-check-in or post-check-out; you can store your bags in the luggage storage.

The Palace Backpackers Reception
The Palace Backpackers common area.

In the dining room, there are plenty of books, games and guitars and an extensive international book exchange upstairs.

During the summer, you can relax in the hammocks or on the balcony. Or go on a group outing to the beach or river. If you happen to be around at the right time, you can purchase a cheap meal at one of the Palace BBQs. Once a month there is a DJ session at the BBQ event (this will end early enough for you to get a good nights sleep).


History of the business

Dave the owner of the Palace Backpackers.

In 1987, Dave had an idea which would set out his future. He built a couple of additional rooms in his house and began letting them out to tourists stopping in Nelson. Thus was the birth of ‘Dave’s Place’, a humble little backpackers on a hill. A few years later, he obtained the lease on a larger house just up the hill and expanded his capacity and rebranded to ‘Dave’s Palace’. 

In 1994, the golden opportunity arose and he purchased the building now known as ‘The Palace Backpackers’. He fostered an environment that brought people together and made them feel like they were at home. The Palace is well loved by many, as you will see if you peruse the colourful old visitors books from the hostel.

Over the years, both Dave’s children have worked with him and more recently, his daughter Zara has returned from Australia with her husband Geoff to take over management of the now 3 properties under Palace Enterprises. Dave is still around, but slowly in the process of passing on his legacy and moving towards a well-deserved, more relaxed life (eventually).


History of the house

Built in 1907 by Henry Baigent, son of a timber pioneer. Henry took over the family timber business H. Baigent and Sons. The home was purchased in the 60s by Mr J. G. Barnett, and part of it was subdivided into flats. All of this was before Dave turned it into the vibrant backpackers’ hostel it is today!

Fun fact, the small attic-like room at the far left on the front of the building was originally designed to take a clock tower!

A historic image of the Palace Backpackers.