Hotel Property Investments
HPI: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$1.10 | Wftq | Lyxjhcz |
New: HPI Demonstrated Resilience in Fiscal 2020
Business Strategy and Outlook
A key attraction of Hotel Property is favourable lease terms that provide for predictable above-inflation rental income from long-term leases to joint venture entity Queensland Venue Company or QVC, which is an agreement between supermarket giant Coles and private equity owned (Kohlberg Kravis Roberts) Australian Venue Company, or AVC. 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 Woolworth’s decision to exit its liquor and hotel businesses.