While transaction details remain confidential, it is understood that the partnership values the portfolio in excess of $100 million, and represents the first major luxury portfolio sale in Australia in over a decade.

“This strategic partnership is a generational opportunity for KSL to re-enter the Australian luxury tourism sector and grow, by leveraging the unrivalled expertise of luxury lodge pioneers, James and Hayley Baillie.” Mr Gibson said.

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Tom Gibson, Vice President of Investment Sales, JLL Hotels & Hospitality Group.

KSL’s partnership with Baillie Lodges signifies the increased investor interest in this exclusive investment market, most notably with LVMH’s $3.2 billion acquisition of Belmond.

“The luxury lodge space is emerging as one of the most robust and lucrative hotel asset classes globally. Though what makes it so challenging to succeed like the Baillie’s have, is the requirement to nail three key elements – an amazing location with the ‘wow’ factor, high barriers to entry and unique local experiences that leave guests in awe.” Mr Gibson said.

KSL’s investment into Australia with the Baillie Lodges partnership, will be their first since the Orion Expedition Cruises in 2008.

Based out of Denver, KSL Capital are widely regarded as the leader’s in the hospitality space, with notable investments including Outrigger Hotels & Resorts, St Regis Aspen and Alterra Mountain Company, which includes iconic ski resorts such as Deer Valley, Steamboat Springs and Big Bear Mountain.

“We recognise the significant long-term potential of the Australian luxury travel industry and are excited to work with James and Hayley. The Baillie Lodges team has set a high bar for Australian luxury travel with truly exceptional properties and five-star management expertise,” said John Ege, a Partner at KSL.

Click here to view the KSL Capital website.

Baillie Lodges was founded in 2003 by James and Hayley Baillie, who together bring a wealth of high end tourism experience to the company. Built on the foundations of continual reinvestment in their lodges, an unparalleled level of attention to detail, a commitment to sustainability and a proudly Australian ethos, the Baillies have built a family business that is now recognised as one of the best in its field. Capella Lodge on World Heritage-listed Lord Howe Island was the company’s first property, followed by multi-award winning Southern Ocean Lodge on Kangaroo Island, which opened in 2008. Longitude 131° overlooking dual World Heritage-listed Uluru-Kata Tjuta National Park joined the portfolio in 2013.

“KSL demonstrates a unique passion for travel and leisure. The investment in Baillie Lodges will allow us to bring our version of wild, experiential luxury to more of Australia’s most remarkable destinations,” said James Baillie, Founder and CEO Baillie Lodges.

Marking the 15th anniversary of Baillie Lodges, this investment provides myriad new opportunities for Baillie Lodges’ dedicated team, loyal guests and valued trade partners.

The Baillies retained Capella, Lord Howe Island’s premium luxury lodge, for sentimental reasons. It will still be part of the Baillie Lodges group. “It will be business as usual and Capella carries on as usual but the shareholding remains 100 per cent with Hayley and me,” Mr Baillie said.

Click here to view the Ballie Lodges website.

See also:

Great Keppel Island sold for over $50 million with JLL to commence hotel operator search

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