Luxury lodge Sequoia claims it’s been frozen from marketing body to protect a competitor

The owners of an award-winning Adelaide Hills lodge say they have been frozen out of a government-backed marketing network.

Sequoia business partners David Horbelt and Malcolm Bean.

The owners of an award-winning luxury lodge in the Adelaide Hills, claim they are being locked out of a government-backed marketing network aimed at promoting Australia as an up-market tourism destination.

The owners of the Sequoia lodge, whose past guests include tennis world No.1 Novak Djokovic and billionaire Gordon Getty, allege they are being denied crucial marketing opportunities offered to 19 other lodges and cruise line members, stretching from Tasmania’s Saffire to Emirates’ One & Only Resort Wolgan Valley in the Blue Mountains near Sydney.

Luxury Lodges of Australia represents and markets 19 prestigious local properties to the tourism industry around the world, but for the past year it has refused to include Sequoia, a 14-suite $20m lodge as a member. The exclusion from joining has left its owners, Dave Horbelt and Malcolm Bean, both prominent South Australian hoteliers, questioning the purpose of the partially government-backed organisation Luxury Lodges of Australia.

Sequoia owner David Horbelt, has welcomed guests including Mr Getty, once America’s richest person, to the lodge in the shadow of Mt Lofty House which he also owns. He says his clientele regularly claim to him that the $2700 per night all-inclusive Sequoia was one of the top two or three lodges in Australia.

“We have tried for years to be a member of Luxury Lodges; it’s an organisation set up by Tourism Australia and largely funded by Tourism Australia,” said Mr Horbelt, who also owns Reef House, Rydges Adelaide and The Park Hotel, Brisbane.

Mr Horbelt believed Sequoia was blocked from joining and taking advantage of the myriad international marketing opportunities, because KSL – the American-owned private equity giant – owns The Louise lodge.

KSL has four properties in South Australia and all feature on the Luxury Lodges list, including The Louise 92km north of Sequoia, and Great Southern Ocean Lodge on Kangaroo Island. KSL also owns Longitude 131 in the shadow of Uluru and Silky Oaks in Far North Queensland.

Sequoia lodge in the Adelaide Hills.

In emails obtained by The Australian, Luxury Lodges of Australia claimed its refusal was based on the proximity of The Louise to Sequoia.

“The board have discussed this at length and I am afraid two baseline principles have led them to decide not to invite Sequoia to join Luxury Lodges of Australia,” according to the email to Sequoia’s owners.

“In quick summary the key issue is proximity to an existing member without major differentiation to compensate for this direct competition.

The Louise in the Barossa Valley. Picture: George Apostolidis

“While we are founded on collaboration between like-minded but independently operated businesses, the board have a duty to protect the investment of its members.”

In a further email, Luxury Lodges of Australia said: “The issue is the combined elements of physical proximity and lack of differentiation in experience and offering from an existing founding lodge, makes Sequoia too directly competitive to an existing member.

“This isn’t just applicable to Sequoia and The Louise, but also to other developments in other regions where proximity to an existing member precludes membership.

“And, as I have reiterated several times, this is not a reflection on the high calibre of Sequoia which we all acknowledge.”

A suite at Sequoia has views across the Adelaide Hills.

Luxury Lodges executive chair Penny Rafferty, told The Australian: “The board will not comment on board decisions for the association.”

Tourism Australia boss Phillipa Harrison, who confirmed the federal government-funded body undertakes marketing work for Luxury Lodges, said: “That’s a decision for their (Luxury Lodges of Australia’s) independent board. I can’t comment.”

Ms Harrison said Luxury Lodges received access to Tourism Australia’s trade shows, PR and media.

The Louise in the Barossa Valley, almost 100km from Sequoia.

Luxury Lodges of Australia’s other member properties include the billionaire Oatley family’s Qualia on Queensland’s Hamilton Island. There’s also a cruise company member, True North Adventure Cruises.

Mr Horbelt’s business partner, Malcolm Bean, said Luxury Lodges was a long-term established brand in the international market.

“The key reason why it’s been so successful is its enormous support by Tourism Australia. It is a renowned brand in America and Europe where it is well understood,” he said.