The Elanor Hotel Accommodation Fund, managed by Elanor Investors Group, has sold the Leura Gardens Resort just under 12 months after acquisition.
The freehold going concern interest in the Blue Mountains resort has been sold to Schwartz Family Company, Australia’s largest privately owned hotel group, which owns the nearby Fairmont Resort.
The sale amount represents a 25% premium on the fund’s original purchase price. The deal was struck after a direct off-market approach through the original selling agent, CBRE Hotels’ National Director Wayne Bunz.
Situated on an expansive 18,793sqm freehold land parcel, the Leura Gardens Resort comprises a mix of guest rooms, suites and serviced apartments, as well as a two-bedroom on-site manager’s residence. It also incorporates substantial conference and events facilities, two restaurants and bars, a coffee lounge, gym, and multiple amenity rooms for a variety of uses.
Dr Jerry Schwartz said, “I thank Elanor for the opportunity to combine Leura Gardens Resort with the Fairmont and leverage its facilities. The acquisition will also allow us to provide for a different target group of guests, at the 3.5 star level, complementing the higher category 4.5 star guests catered for at the Fairmont.”
Elanor's head of hotels, tourism and leisure Marianne Ossovani said, “Although our initial intention was to maintain a long-term strategy for this asset, our foremost priority remains ensuring robust returns for our investors. We're delighted to have achieved significant returns for our fund's investors within a short timeframe.”
Mr Bunz noted, “Opportunities to purchase assets of scale in iconic locations such as the Blue Mountains are scarce, and existing owners benefit from the high barriers to entry for new properties with mounting development costs. This sale is a great outcome for both Elanor’s investors, as well as the Schwartz Group, who will be able to substantially benefit from economies of scale of owning and operating this asset with the Fairmont Resort Blue Mountains and other assets in their portfolio.”