Hotel Property Investments has managed to secure the future of nearly 30 of its hotel and liquor stores after signing long-term lease extensions with Queensland Venue Company.

The new agreements will provide HPI with a 15 year commitment at 20 of these venues and a 10-year commitment at the remaining eight venues, some of which had lease agreements that were to expire in 2021.

HPI CEO Don Smith said the lease extensions were a win for HPI and QVC, which was established in March 2019 between Coles and Australian Venue Company, as it allowed each party to focus on core competencies that would maximise the performance of the pubs and retail liquor stores.

“AVC are experts in venue management and know how to deliver on community expectations of the modern pub," he said.

"Similarly, Coles are equally well credentialed and currently operate the second largest retail liquor portfolio in Australia. We are thrilled to be able to extend our partnership with them both."

Mr Smith said HPI planned to contribute $30 million in capital expenditure over the next two years towards physical upgrades and improvements across the 28 venues.

“The pubs and retail liquor stores in our portfolio are attractive assets with strong growth potential. With an injection of cash and the expert management of QVC we see our portfolio primed for growth,” he said.

“The extended leases allow HPI to make these substantial capital investments with confidence.

"The capital expenditure program has been developed in conjunction with QVC to best maximise the quality and operational performance of each venue.”

Paul Waterson, CEO of Australian Venue Company, said the deals demonstrated the joint venture's commitment to the continued success of the venues.

“We are delighted with how our joint venture with Coles has progressed since its inception," he said.

“Over the last 10 months AVC has been focused on giving these venue managers the tools and support to help them create amazing experiences for their customers.

"They benefit from having extensive operational and marketing support from our head office, whilst maintaining their unique venue identities specific to the local market."

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