The federal government has announced new funding to expand emergency accommodation for First Nations families in Alice Springs/Mparntwe.

On Tuesday, government officials - including Minister for Indigenous Australians, Malarndirri McCarthy - joined Aboriginal Hostels Limited (AHL) chief executive Shane Hamilton to open the newly upgraded Apmere Mwerre Visitors Park (AMVP).

The $4.9 million investment has added 20 short-term beds to the facility, which provides safe and affordable accommodation for First Nations people, including women and children escaping family and domestic violence.

Mr Hamilton said the expansion will "make a real difference" in the lives of Indigenous people in the region, arguing it refletcs AHL's "ongoing commitment to providing culturally safe and affordable accommodation".

"This milestone strengthens our capacity to support more First Nations people, including families, in need of a safe place to stay, especially in Central Australia," he said.

He added that the project builds on AHL's broader goals.

"AHL's vision is to be more than just an accommodation provider; we aspire to be a national leader in housing, healing and opportunity for First Nations people," he said.

The upgraded facility also features a renovated children's playground and baby change area - improvements designed to make the space more comfortable and supportive for families, particularly those experiencing crisis.

Senator McCarthy said the investment is about "dignity, safety and respect", ensuring First Nations women and children have "access to a safe place to stay, especially in times of crisis".

"All women and children deserve to feel safe and supported," she said, adding that the project reflects the government's commitment to working with and listening to Central Australian communities.

Labor's Special Envoy for Remote Communities, Marion Scrymgour, said the expansion responds directly to community calls for more culturally safe housing.

Ms Scrymgour, who is also the local MP, described it as a "step forward in supporting mobility, access to services and keeping families together here in Alice Springs".

"These extra beds mean women and children escaping violence have somewhere safe to go, a place that respects culture and offers comfort in tough times," she said.