Two major investments for Australian hospitality sector

Redcape has bought a hotel with a sports betting bar, while Hotel Property Investments acquired 3 pubs.

Australia.- Two mayor investments in the hospitality and gaming sector took place in Australia in the last few days, showing optimism for recovery of the sector following the Covid-19 pandemic.

Redcape Hotel Group Management has acquired the Gladstone Hotel, Dulwich Hill for AU$38m (US$27.6m).

The hotel has a TAB sports & lounge bar with TAB terminals, Electronic Bingo Terminals, KENO EBTs and four large screens to transmit sporting events.

The company said: “The Gladstone Hotel will complement the group’s portfolio of suburban community hotels in high growth areas, largely in Western Sydney, and will be accretive to distributable earnings on joining the portfolio.”

The hotel has been managed by the same family for the last 40 years and under Redcape will undergo a major refurbishment.

Redcape CEO Dan Brady said, “We are delighted to announce the addition of such a quality asset to our portfolio. Being our first acquisition since returning to full operation and with distributions reinstated, the purchase signifies a return to our strategy of active portfolio optimisation and growing sustainable distributions for our Security holders over the long term.”

Meanwhile, Hotel Property Investments (HPI) has bought three pubs in Brisbane, northern Melbourne and Queensland for AU$63.3m.

The acquisition includes the Mango Hill Tavern, a mixed-use complex in Brisbane with a pub and service station, and the Summerhill Hotel, with a pub in the north of Melbourne.

The company expects to fund the acquisitions through an equity raise of up to AU$48m through a security purchase plan, and another AU$40m through a fully underwritten institutional placement.