Greene King is reportedly seeking to offload its Venture Hotels division in a deal estimated to be worth £90 million.
The pub giant is said to be in discussions to sell the 39-site Venture Hotels portfolio to RedCat Pub Company.
Venture Hotels encompasses Everly Hotels, the boutique brand introduced by Greene King last year as part of its strategy to enter the premium accommodation sector.
The debut Everly Hotels site, the White Horses in Rottingdean, Sussex, opened last year with 32 bedrooms after a multimillion-pound refurbishment. At the launch, Greene King revealed ambitions to develop several more “destination-led” locations.
Greene King’s broader pubs with rooms portfolio is believed to remain off the market, continuing to be a core focus of the company’s overall strategy.
A Greene King spokesperson said: “We have made good progress with Venture Hotels over the last three years, however we are now looking at all investment options for this part of our business. This includes the possibility of different ownership.”
RedCat, backed by US investment firm Oaktree Capital Management, was established in 2021 to capitalise on the wave of pub properties entering the market in the wake of the pandemic.
The company’s founder, Rooney Anand, previously served as chief executive of Greene King for 14 years before stepping down in 2019.
RedCat now operates from approximately 100 sites, with around one-third managed under the Coaching Inn Group banner, which offers a total of 1,400 bedrooms.
Rumors of the sale come after a transitional year for RedCat, which placed its 10-site leased pubs division into administration last year.
Last summer, RedCat secured a £61 million refinancing deal to stabilise the business and announced plans to invest £10 million to £12 million this year to revamp its estate.
