EVT is set to divest approximately $40 million in property over the next 12 months to focus on hotel properties in key city locations, the group reveled at its Annual General Meeting last Friday.

The company’s property portfolio, valued at around $2.3 billion, has been reshaped over the past few years to support the asset-light growth of its managed hotel portfolio in Australia, New Zealand and internationally.

Post Covid, over AU$280 million of assets that do not meet the property criteria have been divested at a premium of approximately 28% over the independent valuations of the properties sold.

Speaking to its two prime Sydney CBD properties located at 525 George Street and 458-472 George Street, EVT said both properties are currently underutilised assets, and that good progress has been made on strategies to increase the value of these properties over the past few years.

“In relation to 458-472 George Street, the Group has secured Development Application (“DA”) approval for the podium component which includes an extension of the QT Sydney hotel,” the company said.

“In relation to 525 George Street, the Group achieved DA approval for a 43-storey mixed use development with an integrated hospitality and entertainment offer.

The EVT Hotels and Resorts network now stands at 84 hotels and 12,559 rooms.

Rydges has now grown to 44 properties and has secured two international sites including Rydges Resort Wailoaloa Beach in Fiji, which is at the planning stage; and Rydges Tauranga in New Zealand, expected to open in the year ending 30 June 2027.

Atura, the Group’s affordable lifestyle brand, has also secured management agreements including Atura Wellington and Atura Oran Park, a new 184-room hotel in south-west Sydney which is expected to open in 2026.

“The board has committed to a structural review of the Group, and the CEO and her leadership team are focussed on creating future optionality, so that when markets normalise, the Group can consider the desirable mix of earnings in the context of Hotels as a growth priority,” the group said.

“The Group’s net debt at 30 June 2024 was AU$304.1 million, below pre-Covid-19 net debt levels.  The balance sheet remains strong and positions the Group well for future growth.”