Redcape picks up the Arthouse
HTL Property is pleased to announce the successful sale of the leasehold interest in Sydney CBD's iconic Arthouse Hotel to Redcape Hospitality. The transaction follows a highly competitive Expression of Interest campaign managed by HTL Property Directors Dan Dragicevich and Sam Handy.
Occupying a prominent position within The Galeries retail precinct on Pitt Street, the hotel has been
operated by the McBeath family for 26 years and remains a Sydney institution. The offering attracted significant interest from both established hoteliers and new market entrants, driven by its 24-hour liquor license, 21 gaming machine entitlements, and annual revenues of approximately $8 million.
The vendor, Ben McBeath, noted, "We are so happy that the Arthouse has been picked up by Redcape, a group with a reputation for looking after their staff, which, after 26 years, was so important to us."
HTL Property National Director, Dan Dragicevich, added, "Opportunities of this scale and strategic
accessibility within the Sydney CBD are exceptionally scarce. The Arthouse has one of the larger footprints in the burgeoning Midtown precinct giving it a competitive advantage and levers for future earnings growth."
The Midtown precinct is currently experiencing significant expansion, supported by the ANZ Tower
development at Liberty Place and the opening of the Gadigal light rail station. These factors have led to high occupancy rates and increased pedestrian traffic, positioning the venue for continued success.
“We’re very excited to bring the institution that is the Arthouse into the portfolio and think it represents outstanding future value for us. Our business model is perfectly suited to continue its growth in a flourishing pocket of the city. We wish Ben all the best after 26 years and we’re looking forward to working with the team,” added Redcape Managing Chris Unger.
“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.”
HTL Property Director, Sam Handy, noted that the transaction highlights continued investor appetite for operationally diverse hotel businesses.
“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," Handy said.
HTL Property, 24th June 2026
