ASX-listed fund manager Elanor Investors snaps up Mayfair hotel and three other SA sites

ASX-listed property fund manager Elanor Investors Group has splashed out more than $100 million on four hotel properties across the state, including the upmarket Mayfair Hotel in Adelaide.

The Mayfair Hotel in Adelaide has been sold to ASX-listed investor Elanor Investors Group.

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ASX-listed property fund manager Elanor Investors Group has splashed out more than $100 million on four hotel properties across the state, including the upmarket Mayfair Hotel in Adelaide.

The Mayfair and the Adabco Boutique Hotel on Wakefield St were acquired by Elanor for around $99 million, becoming its maiden investments within a newly created luxury hotel fund.

It has also spent an additional $14.5 million on the Clare Country Club and Barossa Weintal Hotel, which have been added to its $191 million metro and prime regional hotel fund (EMPR).

The four properties are Elanor’s first foray into South Australia’s hotel market, and are all managed by 1834 Hotels.

The Adabco Boutique Hotel on Wakefield St was originally built in 1896 as the headquarters of Our Boys Institute - a Christian-based youth group.

Elanor head of hotels, tourism and leisure Marianne Ossovani said the two CBD acquisitions would leverage the growing international and domestic demand for “upper scale” accommodation, while the regional purchases would tap into the state’s growing tourism market.

“The (regional) hotels benefit from a strong corporate clientele and the growing tourism market in the South Australian wine country region,” she said.

“Both properties are high yielding hotels with significant potential for operational improvement.

“Furthermore, and core to the EMPR fund strategy, the properties have strong capital growth prospects through expansion of the hotels.”

A $55 million, two-year upgrade of the Mayfair Hotel, on the corner of King William and Hindley streets, was completed in 2015.

The 170-room hotel, in the heritage-listed former Colonial Mutual Life building, includes several restaurants and bars, including the Hennessy rooftop bar.

Its sister hotel, the Adabco Boutique Hotel, opened in 2008 following a $4.2 million upgrade, and provides accommodation across 69 rooms.

The heritage-listed building was originally completed in 1896 as the headquarters of Our Boys Institute - a Christian-based youth group.

Ms Ossovani said the two hotels offered “significant near term operational and strategic value-add opportunities”.

“The strategy of the fund is to acquire high investment value luxury hotels and add value to the hotels through the execution of operating performance initiatives as well as realising on the strategic value add opportunities at the hotels,” she said.

The Barossa Weintal Hotel. Picture: Duy Dash

Elanor controls more than $1.25 billion of assets under management across Australia and New Zealand, and is backed by Singaporean real estate fund Rockworth Capital Partners, which acquired an 18 per cent stake in the company this week.

Last year Elanor paid $35 million for the Campus DXC office building on OG Rd at Felixstow.