Stoic Asset Management becomes largest co-investor in Elanor Hotel Accommodation Fund

INVESTMENT design house Stoic Asset Management has become the largest co-investor in Elanor Investors Group’s (ASX: ENN) newly established Hotel Accommodation Fund with key property-backed domestic tourism assets across Australia.

The $346 million fund is made up of 14 high-quality hotels in the luxury and regional hotel sectors. Stoic Asset Management executive chairman Guy Hedley said the fund focused on focus on the luxury and regional hotel sectors and was expected deliver significant earnings growth with an average distribution yield of 10 percent over the next three years and a guaranteed 8 percent return to June 30, 2022.

The fund’s strategy is to grow the portfolio to more than $500 million and a potential listing on the Australian Securities Exchange.

Stoic Asset Management is an outcome-driven investment management group that designs fit for purpose investment products. It is also the sole co-investor in Elanor’s Wildlife Park Fund and a major investor in Elanor’s Burke Street Real Estate and Healthcare Real Estate funds.

The Elanor Hotel Accommodation Fund includes a hotel operating company and three property trusts. The first property trust in the Elanor hotel fund holds six hotels including the ibis Styles operated by Accor at Byron Bay in northern NSW, Albany, Western Australia, Barossa and Clare, South Australia, Eaglehawk, Victoria and Canberra.

The second trust holds five hotels in Mudgee, Port Macquarie, Tall Trees, Wagga Wagga, Wollongong. The third has Adabco Adelaide, Mayfair Hotel Adelaide, and the famed Peppers Cradle Mountain Lodge in Tasmania.

“Along with luxurious city-based hotels, the portfolio has a unique focus on high-end regional accommodation for which there is a market shortage,” Mr Hedley said.

“Regional areas attract a considerable proportion of Australia’s tourism market and have experienced growth with an increase in intrastate and interstate travel by domestic tourists throughout COVID-19. We expect demand to surge as domestic and international travel revives.”

Mr Hedley said Stoic Asset Management’s strong partnership with Elanor Investors Group helped put it ahead of the market when it came to commercial property opportunities in Australia.

“These are unique and highly sought-after opportunities in the visitor economy – Australia’s fourth largest export sector,” he said.

“We are continuing to look for further high-quality hotel, resort and retreat opportunities in Australia’s thriving domestic tourism market.”

https://www.stoicam.com.au/

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