Blue Mountains Resort for sale as regional NSW's accommodation market booms

Private investment company ARFW Pty Ltd has listed for sale the Leura Gardens Resort in the Blue Mountains region of New South Wales following a multi-million renovation.

CBRE Hotels’ Wayne Bunz and Raymond Tran have been exclusively appointed to steer the Expressions of Interest campaign for the 4-star resort, which is situated on an expansive 18,793sqm freehold land parcel and comprises a mix of 92 rooms, suites and serviced apartments, as well as a two-bedroom on-site manager’s residence.

It also incorporates substantial conference and events facilities, two restaurants and bars, a coffee lounge, gym, and multiple amenity rooms for a variety of uses.

The property has been closed for some 14 months post pandemic to undergo a substantial renovation program which has only just been completed, providing an incoming purchaser with substantial depreciation benefits.

The current owners are anticipating the resort will reopen for bookings mid March, offering a purchaser vacant possession and a multitude of options for owner operators, re-branding, a residential sell down, and or retirement living subject to the relevant planning approvals.

CBRE Hotels’ National Director Wayne Bunz said the property benefited from its proximity to  the heritage listed Blue Mountains National Park, which boasts some of Australia’s most scenic and picturesque viewpoints and lookouts.

“The resort’s already significant corporate and leisure offering is supported by the region’s booming drive visitor market which, combined with the property’s significant business and development potential, will  provide an investor with substantial operational upside,” Mr Bunz said.

CBRE Hotels’ Director Raymond Tran added, “The resort offers an incoming purchaser multiple income streams across an expansive campus, including short and long-term accommodation, multiple food and beverage outlets and a range of conference and events facilities.”

The Blue Mountains region has significantly benefited from the booming domestic drive tourism market in NSW. From 2014 to 2019 the Blue Mountains recorded a substantial 57.1% increase in domestic overnight visitors, which resulted in a 45% increase in local expenditure.

The region was also recognised last year by Wotif as one of Australia’s top trending holiday destinations, with tourist interest in the region having grown by 155% since 2020.

“The mid-scale Leura Gardens Resort is in a prime position to prosper from domestic tourism interest in the region and the competitive product positioning it offers for the budget conscious traveller, ranging from SME conference groups to family leisure groups. With very few comparable resort offerings within the Blue Mountains market, this asset is primed to capitalise on post pandemic travel trends,” Mr Tran noted.

The Leura Gardens Resort is being offered for sale via an Expressions of Interest campaign closing on 07 March 2023 (unless sold prior).