Cronulla backpackers hostel - and Shannon Noll mural - consigned to history books

More than 10,000 people stayed in the hostel from when it opened in July 2000 up till its closure at the end of February this year.

Owner Michael Keogh said, "I am sad to see it go, but I won't miss the way it was going".

"This generation of backpackers doesn't have as much fun as in the past.

"They used to sit around and talk about where to go and what to see, but now they look everything up on their phones, and often don't even go."

Mr Keogh, who had been a real estate agent and valuer, bought the property in 1998 and, after backpacking overseas and studying tourism reports, decided to convert it into a hostel.

However, with the Olympics coming to Sydney, "all the big boys jumped in" and he was priced out of the market in the best locations.

"Then I thought, 'Why not my home town, Cronulla'?"

The Kingsway property was occupied by a dive shop, Sheridan's bike shop and an illegal brothel upstairs.

Only the dive shop stayed, with the hostel developed around it.

Mr Keogh teamed up with Youth Hostels Association (YHA) for 15 years, but his focus then switched to backpackers with working visas.

Many found jobs in local cafes and bars, on building sites and even doing handyman and gardening work for local families.

"At our peak we had more than 50 people going out every day to work," he said.

"They loved it so much, many never went home."

Mr Keogh bought the adjoining property, from where Guy Harris Autos had operated for about 50 years, and planned to expand from 66 to 106 beds until the Global Financial Crisis hit.

During that period, the hostel was home to many economic refugees.

The site was rezoned for six storey development in 2015 and that factor, together with big increases in overheads and feeling he couldn't give any more after 17 years of hands-on management, led Mr Keogh to lodge a development application (DA) for six storey apartments.

Intended closure in 2018 was delayed due to an economic downturn, followed by the pandemic.

Mr Keogh allowed Scott Marsh to paint the huge mural of Shannon Noll, a shire resident, in 2018.

"He is an Australian icon, and Cronulla is a great place for a bit of fun," Marsh said.