Just one year after being dramatically saved from the brink of collapse, the major pub chain RedCat Hospitality has announced a significant strategic move: the sale of 21 of its branches.
A Strategic Portfolio Reshuffle
The group, which was first founded in 2021 and is led by former Greene King chief executive Rooney Anand, has confirmed an agreement to sell 21 pubs from its leased and tenanted division. The buyer is Admiral Taverns, the UK's leading community pub group.
This deal will see Admiral Taverns add these sites to its already substantial portfolio of 1,350 community, wet-led pubs, further cementing its market position.
Refocusing on Growth Areas
Following this divestment, RedCat has announced a clear strategic pivot. The company now intends to shift its primary focus onto its managed pubs and rooms division, which includes The Coaching Inn Group.
This move is part of a broader restructuring of the firm's portfolio over recent years. RedCat now plans to invest up to £12 million into its estate this year, signalling strong confidence in its new direction.
The group stated it will now be concentrating its efforts on its carveries and accommodation branch, areas where it sees sustained customer demand.
A Transformational Year of Recovery
The past 12 months have been described as "transformational" for the company. This period of recovery has yielded impressive financial results, with the firm reporting a significant rise in sales and profits.
Specifically, its adjusted EBITDA skyrocketed by 290 per cent to £8.8 million for the period up to March 30. Furthermore, sales for its rooms division saw an eight per cent hike, reflecting increased demand for hospitality venues that offer accommodation.
Richard Lewis, Chief Executive of RedCat Hospitality, commented on the strategic shift, stating: “This is the right move for our business. RedCat’s greatest opportunity lies in further expanding and investing behind our managed business and pubs with rooms model, where we see strong and sustained customer demand.”
He also thanked the Pub Partners team and Ali Martinez for their leadership. Chris Jowsey, Chief Executive of Admiral Taverns, said: “This high-quality portfolio complements our existing estate and marks yet another step forward against our strategy.”
