Redcape Hotel Group considers trimming hotels from portfolio
Listed pub and hotel operator Redcape Hotel Group is open to selling off underperforming properties after reporting a full-year lift in revenues.
The group’s portfolio grew in the 2018-19 financial year to include six new venues, while it also sold one site. The portfolio of 32 venues is now valued at $1.08 billion.
Capital from the pub sale was redirected to refurbish three sites in western Sydney.
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Redcape chief executive Dan Brady says he is open to divesting in assets that are no longer offering returns for the company so they can be redirected to emerging venues.
“This is a business where if we’ve got a hotel or a pub that we can’t add any more value to, we will divest it and we certainly did one in that period,” he says.
“We’ve got great opportunities within the portfolio to refurbish hotels and get very attractive returns.”
Like-for-like revenues grew 3.3% on the year prior, while pro forma operating earnings before interest, tax, depreciation and amortisation was up 21.3% at $67.1 million.
Redcape shares added 3.5c to $1.095.
This article originally appeared on www.theaustralian.com.au/property.
