Schwartz Family Company has acquired Leura Gardens Resort in New South Wales’ Blue Mountains region for AU$25 million from the Elanor Hotel Accommodation Fund.
As the 15th hotel in the Schwartz network, Leura Gardens Resort joins the company’s award-winning Fairmont Resort Blue Mountains and Leura Golf Club, all within a few minutes’ drive of each other, and strengthens its position as a premier leisure and conference provider in the region.
“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,” said Schwartz Family Company Director, Dr Jerry Schwartz.
“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 is famous for.”
The sale, just under 12 months after Elanor’s acquisition represents a 25% premium on the fund’s original purchase price and followed “a direct off-market approach” through the original selling agent, CBRE Hotels’ National Director Wayne Bunz.
“Although our initial intention was to maintain a long-term strategy for this asset, our foremost priority remains ensuring robust returns for our investors,” said Elanor’s Head of Hotels, Tourism and Leisure, Marianne Ossovani.
“We’re delighted to have achieved significant returns for our fund’s investors within a short timeframe.”
Bunz said the sale is a great outcome for both parties.
“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,” Bunz said.
“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.”
The recently refurbished resort includes a 92-room hotel set on 4.5 acres of landscaped gardens. The accommodation offering includes a mix of guest rooms, suites and serviced apartments, while recreational facilities include a solar-heated outdoor swimming pool, fitness room, guest lounge, two restaurants and bars, with Leura Golf Course across the road.
With multiple conference and events spaces, the Olive Tree Restaurant, and its expansive grounds, the venue is popular for weddings, functions and corporate retreats.
The acquisition coincides with the announcement that the NSW Blues rugby team will establish a training base in the Blue Mountains, using the facilities at both the Fairmont and Leura Gardens.