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Redcape Hotel Group (ASX: RDC) has bucked the hospitality blues and forecast a record September quarter after adapting to the new hospitality landscape and COVID-19 restrictions.
The company witnessed positive trading in the first quarter of FY21 and hopes to deliver EBITDA ahead of the equivalent period last year, even when proceeds received from the JobKeeper wage subsidy program are excluded.
As such, the operator of pubs, venues, and bottle shops in NSW and QLD expects to report operating EBITDA of $24 million in 1Q21, up from $19.5 million year on year.
It comes on the back of Redcape reporting operating EBITDA for July 2020 above that of July 2019 from its venues including the Eastwood Hotel in Sydney and the Pig 'N' Whistle Redbank Plains in Ipswich, Queensland.
Redcape CEO Dan Brady says the company's portfolio adapted fast to the new hospitality environment and COVID-19 restrictions.
"Our ability to deliver a record first quarter performance following the reopening of our venues demonstrates the resilience of our underlying property-backed business and the investments we have made in our people, venues and platform capability," says Brady.
"Through our portfolio of community-based pubs and heightened engagement with our staff and customers, we've quickly adapted to the new environment while still providing the hospitality experience customers value."
Because of the successful quarter, Redcape will be issuing a distribution of 1.83 cents per stapled security for the September quarter.
"Reinstatement of distributions now allows us to resume our strategies that should result in growing earnings and increasing asset values," says Brady.
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