ASX-listed hotel giant Redcape has announced acquisition of both the Shafston Hotel at Kangaroo Point and Aspley Hotel in Aspley from Delaware North for $27.5 million.
Delaware North is a US hospitality giant founded in 1915 that operates hundreds of hospitality venues across four continents and employs over 60,000 people. At one point it was a contender for the JV with Coles’ Spirit Hotels.
Early 2018 news emerged of its strategy to “accelerate growth” in its pubs in Australia, resulting in the purchase of the Shafston and Aspley hotels in June from the stable of Colin Macleod’s Oz Pub Group.
The Shafston, in Brisbane’s east, comprising a restaurant, function space and gaming room with 34 EGMs, sold for north of $18 million.
The Aspley, built 1935 in the northern suburbs, offers similar facilities and 40 EGMs and sold for just over $14 million.
These were the first for Delware in Australian pubs and tipped to potentially be the forerunners to many more purchases in Queensland, but it’s understood a split with Australian stakeholders prompted changes to plans.
The two assets will increase the Redcape Hotel Group (ASX:RDC) Queensland presence to eight hotels, and Australian east coast footprint to 35 venues, mostly freehold going concerns.
They will be funded through existing Group resources, with settlement anticipated prior to June 2021 and expectations they will contribute to distributable earnings in FY21.
“The incorporation of these two Queensland hotels into the portfolio following the acquisition of the Gladstone Hotel in Sydney’s inner west last month, provides further evidence of a return to our strategy, post the COVID trading disruption,” says Redcape CEO Dan Brady.
“The Aspley Hotel and the Shafston Hotel will benefit from Redcape’s local knowledge, operational platform and repositioning capabilities.
“Both hotels will be revitalised by considerable capital investment to provide quality hospitality offerings to meet the demands of their local communities.”
