Elanor Hotel Accommodation Fund

Hotel accommodation fund targeting distributions of 9.2% in FY23

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Core Property has again reviewed the Elanor Hotel Accommodation Fund, the latest fund offering by Elanor Funds Management.

Established in 2021, the Fund invests in a diversified portfolio of hotel accommodation properties across Australia. Earnings have recently begun to recover as the sector emerges from COVID-19 lockdowns, with higher occupancy and spending reported across the portfolio.

The Manager is looking to expand the portfolio through the acquisition of two hotels – Estate Tuscany Hunter Valley NSW and Sanctuary Inn Tamworth NSW.

To help fund the acquisitions, the Manager has reopened the Fund and is seeking to raise $19.4M through the issue of 19.4M units priced at $1.00 per unit. The key aspects of the Offer include:

  • The acquisitions will expand the portfolio to 16 hotel accommodation properties valued at $380M, with a focus on the luxury and regional market segments.
  • Forecast distributions of 9.2% p.a. in FY23.

The Offer has a close date of 30 June 2022 and is available to wholesale and sophisticated investors.

Core Property continues to rate the Fund as RECOMMENDED.