Redcape swoops on hotel

By the Editorial Team · Thursday, June 25, 2026

Redcape Hotel Group has purchased the leasehold interest in Sydney’s Arthouse Hotel for approximately $7 million, expanding its presence in the city’s growing Midtown precinct. The acquisition enhances Redcape’s portfolio of 37 venues across Australia and positions the company to benefit from the hotel’s prime location, 24-hour liquor licence, and strong revenue potential amid rising investor demand for high-yield leasehold assets.

Redcape Hotel Group has acquired the leasehold interest in the Arthouse Hotel, located in Sydney’s central business district, for approximately $7 million as part of its ongoing expansion in the city. The transaction adds to recent deals by the group, which also purchased the Frisco Hotel in Woolloomooloo from Queensland-based Sun Group for around $15 million.

This latest acquisition follows a series of notable trades by Redcape, including the sale of the South Terrace Hotel in Bankstown for $54 million and the purchase of The Entrance Social Club Hotel from Thomas Hotels for $36 million. The Arthouse lease was acquired from Alsimas Pty Limited.

Redcape is a fund under MA Financial Group that owns and operates a portfolio of 37 pubs and hotels across New South Wales, Queensland, and Victoria. Despite its broad reach, only two of its venues—the Criterion Hotel and Frisco Hotel—are situated in metropolitan Sydney.

The Arthouse Hotel occupies a prominent position within The Galeries retail precinct on Pitt Street. The venue has been managed by the McBeath family for 26 years and is recognized as a Sydney institution. The sale attracted strong interest from both established hotel operators and new market entrants, largely due to the hotel’s 24-hour liquor licence, 21 gaming machine entitlements, and annual revenues estimated at about $8 million.

Ben McBeath, representing the vendor, highlighted Redcape's reputation for staff care as a key factor in the decision to sell. “Redcape had a reputation for looking after their staff, which, after 26 years, was so important to us,” he said.

Real estate agents Dan Dragicevich and Sam Handy of HTL Property managed the sale. Dragicevich noted that opportunities of this scale and accessibility within Sydney’s CBD are rare. He added that the Arthouse’s substantial footprint in the growing Midtown precinct provides it with a competitive advantage and potential for future earnings growth.

The Midtown precinct is undergoing significant development, supported by projects such as the ANZ Tower at Liberty Place and the new Gadigal light rail station. Redcape managing director Chris Unger said the acquisition aligns well with the company’s business model and growth strategy. “The Arthouse puts icing on the cake on what has been a record financial year for Redcape, and we’re well placed to see that continue into the next one,” Unger stated.

Handy underscored the strong investor demand for diverse, operationally sound hotel assets in New South Wales. “This sale reinforces the strength of the NSW hotel transaction market, and in particular high-yielding leasehold assets, which in the current elevated interest rate environment are becoming increasingly sought after,” he explained.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.