Redcape Group boosts QLD portfolio with Shafston, Aspley hotels for $27.5m

Two of Brisbane’s better known suburban pubs have been snapped up by a NSW operator renown for its `community’ hotel focus.

The Shafston Hotel in Kangaroo Point.

A leading Sydney-based hotel group has increased its Queensland footprint with the acquisition of two Brisbane pubs.

Redcape Group has exchanged contracts to pay $27.5m for freehold/going concern of the Shafston Hotel at Kangaroo Point and the Aspley Hotel at Aspley.

The deal will be settled before June 2021.

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The two pubs will increase Redcape’s Queensland presence to eight hotels, broadening its Australian east coast footprint to 35 community hotels.

The Shafston Hotel and Aspley Hotel were acquired by US hospitality giant Delaware North in 2018 for just over $30m from Oz Pub Group.

They were reportedly attracted to the potential gaming revenue both hotels could offer.

In a statement Redcape said it was a proven local operator who understands Australian suburban communities and the important role pubs play as social meeting places.

The Aspley Hotel in Aspley.

“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,” Redcape CEO Dan Brady said.

“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.”

The dual assets provide immediate presence in the tightly held Brisbane Metro Hotel market with multiple indoor/outdoor dining and bar areas, combined gaming fleet of 74 Machines, significant land holdings (8974sq m combined) and a large retail liquor presence.

JLL Hotel’s Tom Gleeson, who struck the deal, said he was appointed by Delaware North to sell the properties to refocus on their core business lines.

“We congratulate Redcape Hotel Group on these exciting acquisitions that further

bolster their presence within Brisbane metro gaming hotels,” he said.

“This announcement acutely showcases the importance of understanding not only the wider market drivers but individual group investment objectives and horizons as key industry stakeholders look to activate or re-position capital in an environment that is providing increasingly stable footing.”

JLL Hotels has transacted over $300m worth of hotels in the last three weeks with still some further announcements to come prior to the New Year break.