Palace Backpackers - Hervey Bay is average. It serves backpackers going to or coming from Fraser Island, many of which stay here for a night or two. The atmosphere is quiet during daytime because most of the people are on Fraser Island but the hostel comes to life every night at 6 p.m. when a new batch of travelers arrive. Palace Backpackers is a part of Palace Adventures which organises tours to Fraser Island and the Whitsundays.
The Location
Palace PB is located near Scarness Beach. Location is pretty remote from shops, cafes, and restaurants. It's easy to reach only by car (off-street parking at the back) but the hostel runs a courtesy bus to pick up and drop off travelers to the transit centre.
Hervey Bay in itself is pretty quiet and boring -- people come and go in this hostel all the time. While the beach is only a five-minute walk away, it takes almost twenty minutes to walk to the nearest supermarket. There are some bars and restaurants on the Esplanade by the beach but no proper backpacker scene.
Rooms and Bathrooms
Palace offers doubles and four- to eight-bed dorms. The hostel is divided into units with separate entrances. Each unit has a number of dorms, a seating area, kitchen, two showers, and two toilets. Dorms have bunk beds but no lockers, fans but no air cons. Beds are nice and firm and rooms spacious.
Toilets and showers are separate, which is good and shortens the waiting time. As in so many other hostels also here some of the taps are leaking. Shower rooms are never dry and the water builds up in the structures. This causes visible moulding.
Common Spaces
Common areas in the units consist of an open kitchen plus a seating area: table and chairs and two sofas. Each kitchen has a fridge, oven/stove, microwave, water boiler, and a toaster. The biggest problem is the amount of cutlery -- there's hardly enough forks/knives/cups for even a party of six eating together -- and each unit houses at least twenty people. Other common spaces outside the units include a TV lounge, a pool, internet next to reception, laundry, and four hammocks in the outside courtyard.
Summary
Hervey isn't that exciting and not worth staying for more than two nights. This hostel reminds us more of a housing complex with all the small units than a hostel. Palace is notorious for bedbugs and the smell of fumigation lingers on in all the rooms. Nobody we knew got them during our stay but many were alarmed and said they would not stay here again.
— Exklusive Hostelz.com Übersicht
May 2009