Lucrative deal sealed with sale of Leura Gardens Resort

In a notable transaction, the Elanor Hotel Accommodation Fund, managed by Elanor Investors Group, has sold the Leura Gardens Resort to Australia’s largest privately owned hotel group, Schwartz Family Company. 

The acquisition of this prestigious resort, nestled in the heart of the Blue Mountains consolidates the Schwartz Family Company’s presence in the Blue Mountains, joining the award-winning Fairmont Resort Blue Mountains and Leura Golf Club, all within a few minutes’ drive of each other.

Leura Gardens Resort is the 15th hotel in the Schwartz hotel network and was acquired for $25 million from the Elanor Hotel Accommodation Fund.

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The sale has garnered significant attention due to the impressive premium attached to it, representing a 25 percent increase from the original purchase price by the fund. The deal materialised following a direct off-market approach orchestrated by the original selling agent, CBRE Hotels’ National Director, Wayne Bunz.

Recently refurbished, Leura Gardens Resort is an expansive 92-room hotel set in four and a half acres of landscaped gardens. It offers a choice of studio, family, and self-contained apartments. Recreational facilities include a solar-heated outdoor swimming pool, fitness room, guest lounge, and on-site restaurant, with Leura Golf Course across the road.

Leura Gardens Resort is located just a few minutes from the picturesque village of Leura, the gateway to the World Heritage-listed Blue Mountains National Park and its attractions, including the world-famous Three Sisters, Sublime Point, Echo Point and Scenic World.

The extensive grounds, multiple conference and events spaces, and the Olive Tree Restaurant make Leura Gardens Resort popular for weddings, functions and corporate retreats. 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 New South Wales.

Director of Schwartz Family Company, Dr 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, using the facilities at both the Fairmont and Leura Gardens.

“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 Dr 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.”

Commenting on the acquisition, he said, “I thank Elanor for the opportunity to combine Leura Gardens Resort with the Fairmont and leverage its facilities.

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.”