Elanor Investors are seeking to raise $19.4m to support the acquisition of 2 new accommodation assets for their Hotel Accommodation Fund.
The Fund is looking to acquire Estate Tuscany Hunter Valley NSW, valued at $12.75m and Sanctuary Inn Tamworth NSW, valued at $16.45m. Estate Tuscany Hunter Valley is a 4.0-star 38-room hotel located in the Hunter Valley wine region, 64km north-west of Newcastle NSW and the Sanctuary Inn Tamworth is a 4.0-star, 60-room hotel located in the heart of Tamworth on the New England Highway, 282km north- west of Newcastle and 2km south-east of the Tamworth railway station.
The acquisitions and capital raising will increase the Funds’ portfolio to 16 properties valued at $379.9M.
Hotel assets have has been impacted by COVID-19 and flooding events over the past 2 years. Regional demand has largely recovered, and in some instances surpassed pre-COVID-19 levels, supported by a wave of domestic tourism. Regional hotels are heavily weighted to domestic use and are expected to be well supported as economic growth (particularly in agriculture) spurs regional business & family trips.
Elanor reports that trading conditions in its portfolio have improved since February 2022 following an increase in vaccinations and the exit of lockdowns as a result of the Omicron variant and are forecasting distributions of 9.2% p.a. from the Fund in FY23. The forecast takes into account the acquisitions as well as updated trading conditions.
Elanor currently manages approximately $2.6bn of Funds Under Management across Retail, Office, Healthcare, Hotels, Tourism & Leisure sectors.
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