Cradle Mountain Lodge sits in Northwest Tasmania

Leading Australasian real estate funds management business Elanor Investors Group has launched a new AU$346 million hotel fund which is expected to rapidly acquire new assets across the region.

The ASX-listed group has AU$2.3 billion in assets under management across Australia and New Zealand and has placed 14 regional and luxury hotels – including Mayfair Hotel in Adelaide, Peppers Cradle Mountain Lodge in Tasmania, Byron Bay Hotel and Apartments in New South Wales and ibis Styles Canberra – representing some 1,179 rooms – into the new Elanor Hotel Accommodation Fund (EHAF).

Elanor Investors Group’s Head of Hotels, Tourism and Leisure, Marianne Ossovani, said she expects the Fund to grow quickly and add significant new accommodation assets to the portfolio.

“This is an exciting opportunity to invest in a high quality portfolio of luxury and regional hotels that are well placed to benefit from the ongoing structural shift towards domestic tourism,” she said.

“We believe there are good opportunities to grow the fund to over AU$500 million in the short term.

“As a potential liquidity event for investors, there may be the option to list the fund on the ASX.”

Elanor Investors Group has invested significantly in recent years, including the key acquisition of the Mayfair Hotel in Adelaide and the major upgrade at Cradle Mountain Lodge in Northern Tasmania.

Cradle Mountain Lodge’s Waldheim Spa.

The company has so far invested over AU$10 million into Cradle Mountain Lodge, which has seen the introduction of new ‘King Billy’ suites along with upgrades to the Lodge’s restaurants and the roll-out of new sustainable practices.

Ossovani told HM further enhancements are planned for Cradle Mountain Lodge as the property readies for its 50th anniversary later this year, while the Mayfair Hotel in Adelaide is set to receive a major upgrade of the food and beverage facilities on offer.

Elanor Investors Group CEO, Glenn Willis, added: “The launch of the new fund is a continuation of our strategy to grow our funds under management via sector specific funds.

“EHAF has attracted strong investor interest from wholesale capital partners and we look forward to introducing further capital partners to EHAF as we grow the Fund.”

Alongside accommodation, Elanor Investors Group’s key sectors of focus are commercial office, healthcare real estate and retail real estate, with an investment management objective “to acquire and unlock value in real estate assets that provide strong income and capital growth potential”.

James Wilkinson

Editor-In-Chief, Hotel Management