After just 12 months of ownership an investment fund has made a 25 per cent premium on its Blue Mountains resort.
Elanor Hotel Accommodation Fund has sold the Leura Gardens Resort for $25 million to the Schwartz Family Company, which also owns the nearby Fairmont Resort.
The acquisition strengthens the Schwartz Family Company’s position as the region’s “premier leisure and conference provider” and consolidates its portfolio alongside the Fairmont Resort Blue Mountains and Leura Golf Club.
Schwartz Family Company director Jerry Schwartz said the hotel purchase was well timed with the announcement that the NSW Blues rugby team would establish a training base in the Blue Mountains.
“The Blue Mountains is Sydney’s holiday playground and one of the most popular destinations for weddings, retreats, leisure groups, conferences and events, and by bringing these three venues together, we can offer a complete tourism solution,” Schwartz said.
“Leura Gardens Resort’s 3.5-star accommodation will complement the 4.5-star accommodation at the Fairmont, while we can also offer multiple different venues for functions along with the renowned outdoor activities that the Blue Mountains region is famous for.”
Leura Gardens Resort is the 15th hotel in the Schwartz hotel network and was acquired for $25 million from the Elanor Hotel Accommodation Fund.
The 92-key hotel on 4.5ha of landscaped gardens has been recently refurbished. The hotel will now operate in conjunction with Fairmont Resort and Leura Golf Course to offer one of the most comprehensive conference and event venues in regional NSW, according to Schwartz.
CBRE hotels national director Wayne Bunz, who sold the property to Elanor Hotel Accommodation Fund about a year ago, facilitated the off-market deal.
“I thank Elanor for the opportunity to combine Leura Gardens Resort with the Fairmont and leverage its facilities,” Schwartz said.
“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 head of hotels, tourism and leisure Marianne Ossovani said the fund’s intention had been to maintain a long-term strategy for the asset.
“Our foremost priority remains ensuring robust returns for our investors,” Ossovani said.
“We’re delighted to have achieved significant returns ... within a short timeframe.”
In February, the Schwartz Family Company inked a deal to adopt an independent hotel management model launched near the end of last year.
Under the deal, Trilogy Hotels takes over management of Mercure Sydney, Ibis Sydney World Square, Mercure Canberra and Fairmont Resort Blue Mountains, bringing more than 1000 rooms to the start-up’s platform.
It is the first deal for Trilogy Hotels since its business launched in December, 2023 by three Australian hospitality innovators, Scott Boyes, Grant Alchin and Tony Ryan.
