The Investment Thesis for a PUB?

Red Cape owns 36 PUBs. RDC is an income stop with a 7.5% cash yield per annum, distributed quarterly. If you go into the market and buy an A-class quality hotel, it can be anywhere at the 6% return mark up to the 8%. And that's if you've got the $50 million or the $80 million to buy the PUB. Our thesis is very much about adding value. So we'll apply growth capital to the hotels. We'll enhance facilities. What we principally do though is connect with customers. That's our value chain, which then spins on to our customer and PES number.

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