Redcape acquires Arnaout's Hunter Valley pub portfolio in near-$500m deal
Redcape Hotel Group, a fund managed by ASX-listed MA Financial, has acquired a portfolio of pubs and hotels concentrated in the Hunter region from prominent NSW publican Sam Arnaout, in a transaction worth close to $500 million and ranking among the largest pub deals of its kind.
The portfolio takes in several well-known Hunter Valley venues — the Argenton Hotel, the Edgeworth Tavern, Hotel Elermore, the Gunyah Hotel and Cessnock's Peden's Hotel — alongside two prominent Newcastle properties, the Sydney Junction Hotel and the 104-room QT Hotel Newcastle and Sports Bar.
Unlike larger recent pub portfolio transactions such as Charter Hall and Hostplus's $760 million purchase of Hotel Property Investments in 2024 and the $1.7 billion ALE Group deal in 2021, Redcape's acquisition from Arnaout's Iris Capital secures full freehold ownership of the property and operating businesses at each site.
As part of the arrangement, Iris Capital will take on two Sydney properties from Redcape in return: the Revesby Pacific Hotel and the Crown Hotel Revesby.
Arnaout described the sale as the culmination of a long-term investment approach. "This transaction represents the successful completion of a strategy we commenced more than a decade ago to identify exceptional regional opportunities invest with conviction and unlock long-term value through active ownership and development," he told the AFR.
"From revitalising iconic hotels to delivering the QT Newcastle and the East End precinct, we leave behind assets that have become integral to the region's future."
Proceeds from the sale will support Iris Capital's ongoing projects, including its recently acquired St Ives Shopping Centre development and the planned Revesby Pacific redevelopment. The group is also still working to complete a separate $192.7 million deal struck last year to acquire the Reef Hotel Casino in Cairns.
A number of the Hunter properties carry existing approvals for residential development, including 114 apartments at the Gunyah Hotel and 272 apartments at the Sydney Junction Hotel. Redcape had already been reviewing redevelopment potential across parts of its NSW portfolio to take advantage of the state government's fast-track housing approval pathway.
Redcape managing director Chris Unger said the acquisition fit the group's broader growth strategy. "We're excited about these pubs – they're diversified, resilient, and underpinned by material real estate holdings," he said. "They will continue to benefit from growth in the region and our investment in them.
"This transaction continues our strategy to diversify our portfolio through long-term growth opportunities, boosting its resilience and outlook as a result."
JLL Hotels & Hospitality Group's John Musca, who brokered the deal alongside colleague Ben McDonald, said the transaction reflected broader market trends.
"This deal exemplifies the maturation and sophistication of Australia's hotel investment market," he said.
Arnaout, a former panel beater turned publican with an estimated fortune of $3.47 billion, was ranked 50th on the 2026 Financial Review Rich List. He holds more than 30 NSW hotels, over a dozen Ibis Budget properties, and has development projects underway on the Gold Coast, in Newcastle and in Sydney, in addition to owning Casino Canberra and Lasseters Hotel Casino in Alice Springs.
The deal adds to a string of transactions for Redcape this year. The group bought Sydney CBD's Arthouse Hotel for about $7 million in June and the Entrance Social Club on the NSW Central Coast for around $36 million in May, while offloading the South Terrace Hotel in Bankstown to the Oscars Group for $54 million.
Jonathan Jackson, 8th July 2026
