Hotel Property Investments
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$5.10 | Nvls | Nxxqxnth |
Hotel Property Investments' Outlook Depressed by Rising Interest Rates
Business Strategy and Outlook
A key attraction of Hotel Property Investments is favorable lease terms that provide predictable, growing rental income from long-term leases to Queensland Venue Co. QVC is a joint venture between supermarket giant Coles and private equity-owned Australian Venue Co. AVC manages the day-to-day operations of the hotels, with Coles needing the hotel licences to operate its liquor retailing business under restrictive Queensland laws. There is ongoing uncertainty around Coles' longer-term strategy regarding its liquor business following competitor Woolworths' decision to exit its liquor and hotel businesses.