Rare NSW wellness retreat draws abundant interest

Tough COVID restrictions and lockdowns have been a silver lining for Ananda Wellness Retreat which is now on the market.

The former function and accommodation centre has undergone a luxury renovation and has enjoyed an abundance of clients, thanks to the wellness tourism industry’s growing popularity during the pandemic.

The deluxe day spa and yoga centre in Jamberoo, 30km south of Wollongong, is now offering buyers $120,000 in monthly revenue.

It has 43 guest rooms and suites, a vegetarian restaurant, a pool, tennis court, barbecues, outdoor hot tub, conference centre, outdoor chapel, Vichy showers, steam room, floatation tanks, two gyms and three treatment rooms.

There’s also the possibility for hospitality investors to extend the 3.6ha freehold resort further.

Wellness industry soars during COVID

Wellness retreat guests have proved they’re happy to spend big money on such holidays with the global wellness tourism industry growing by 15.1% since 2017, according to Colliers’ Wellness Tourism Research Report, released in October 2021.

The report stated restrictions and lockdowns had resulted in people actively pursuing “new ways to be well” and “immunity-boosting escapes for preventative or restorative reasons”. 

The global sector is now worth $735.8 billion, with the industry predicted to reach $779.1 billion by 2027, according to the Colliers report.

Domestic wellness tourism already represents about 17% of overall tourism expenditures with these tourists spending 178% more than non-wellness tourists. 

The wellness retreat comes with a vegetarian restaurant and a dining area. Picture: realcommercial.com.au/for-sale

Colliers’ national director – Asia Pacific hotels transaction services, Karen Wales, explained the pandemic had resulted in a high focus on health and wellbeing, which was expected to continue.

“Retreats are already seeing very strong forward bookings now that borders are reopening and travel is resuming, with domestic leisure travel driving the recovery,” she said.

“And as borders reopen, Australia is well placed to benefit from the significant influx of international wellness tourists.”

Wellness retreat buyers are also expected to gain from the industry’s COVID silver lining as the rare properties available for sale typically offer excellent cash flow and plenty of profit.

Luxury wellness retreats such as the recently listed Gwinganna Lifestye Retreat  in Queensland’s Tallebudgera Valley, part-owned by Hugh Jackman, are already turning plenty of heads.

Olivia Newton-John’s Gaia Retreat and Spa at Byron Bay also sold in October last year for $30 million to billionaire Andrew “Twiggy” Forrest.

This deal came on the back of Mr Forrest’s $42 million purchase of Lizard Island, off the coast of Cairns, which features a deluxe day spa, accommodation, restaurant and bar.

Open to new opportunities 

Selling Ananda twice and getting married at the site 20 years ago means Ananda holds a special attraction for Tourism Property managing director Matt Davidson.

He explained the vendor – a Sydney-based, qualified yoga instructor – purchased the property in April 2020 for around $5 million, after it failed to succeed with two other buyers.

Ananda’s current setting is definitely a far cry from the property’s former life as function and accommodation centre, Jamberoo Resort, and a country mile from its original role as a German restaurant and beer house.

Known locally as Uncle Tom’s Hut, the 1960s-built establishment was Australia’s first venue to hold an Oktoberfest celebration.

Later renamed Jamberoo Valley Lodge and then Jamberoo Resort, the property fell into disarray in 2012 with bank lenders eventually foreclosing on it.

The 25-metre pool was refurbished in 2021 and features hardwood decking and a covered barbecue area. Picture: realcommercial.com.au/for-sale

“The owner’s plan was always to reinvigorate it,” Mr Davidson explained.

“Through 2021, he did extensive renovations and really changed the direction of the property to make it the health and wellness retreat that it is today

“The property’s income is now more than triple what it was prior to him taking over.”

Interest pours in

Mr Davidson said while Ananda was above the average Mum and Dad investment level, Ananda has received abundant interest from mid-high range hospitality investors including Sydney-based hotel companies.

The property is also attracting interest from new entrants to the hospitality market chasing a good investment return and other buyers are keen to increase or expand what’s already on-site.

“This property is screaming opportunity,” Mr Davidson said.

“There’s a lot more to be done here in terms of growth while also still having a solid base of income.”

Mr Davidson said on-site management staff were looking forward to staying on as well, which could greatly assist the new buyer.

Plenty of hope for NSW tourism

Ananda’s proximity to Sydney is another big bonus for the property, NSW Tourism Industry Council chairman, Simon Spellicy explained.

“Regional areas such as Jamberoo which are within a two to three-hour drive of Sydney have done reasonably well during COVID with people able to travel there after the Sydney lockdowns were over,” he said.

Ananda’s Vichy showers are a great way to enjoy a waterfall-style massage while you relax. Picture: realcommercial.com.au/for-sale

Mr Spellicy said it was difficult to say what 2022 would bring to places like Jamberoo, however he predicted a better year than 2021 barring employment issues – thought Ananda already has on-site staff.

“It seems unlikely that we’ll go back into any kind of lockdown so I think we’ll start to return to normality plus the south coast is a big attraction for people from Sydney and Canberra,” Mr Spellicy said.

Ananda Wellness Retreat is for sale for less than $10 million.