The 42-bedroom Castle of Brecon Hotel in Powys will be the first development in a planned investment programme for the year to March 2026.
It will run alongside an acquisition programme as the business looks to expand the Coaching Inn Group, which recently took the title of Best Accommodation Operator at the 2025 Publican Awards, further.
In a recent financial update, RedCat, which was founded by Rooney Anand, also revealed it had deployed an £8m capital investment programme.
This included five refurbishments - the Bull in Barton Mills, Suffolk; the Wig & Mitre in Lincoln, Lincolnshire; alongside the Crown Inn, the Curzon Arms and the Langton Arms in Leicestershire, which the firm said reflected disposals and a more focused go-forward estate.
This came as the business reported a rise in turnover of 8% to £129.8m in the year to 31 March 2025.
Performance stabilised
Furthermore, the business also saw a 2% increase in like-for-like sales while site earnings before interest, taxation, depreciation and amortisation (EBITDA) was also up 13% to £13.2m and adjusted EBITDA of £2.2m.
Moreover, the Coaching Inn Group saw sales up almost a fifth (18%), which the business said led the strong financial performance.
During the previous 12-month period, RedCat secured a £61m debt refinancing, supported by Barclays.
Chairman of the group Rooney Anand said: “During the year and in the 12 months since, we have stabilised the performance of the business, identified the go-forward estate, secured a refinancing of the group and returned RedCat to an agenda of investment, growth and expansion.”
RedCat Hospitality chief executive Richard Lewis took on the role 18 months ago and recently told The Morning Advertiser the business was “a bit like a large collection of adopted children”.
Strong and stable position
On the latest results, he said: “It is testimony to the hard work of the entire RedCat team over this reporting period and in the past year that this business has emerged in a more stable and strong position.
“We are incredibly excited about what the future holds for our pubs and our people and despite the economic headwinds facing the entire industry, are confident we are entering a period of innovation and growth for the business.
“When it comes to number of rooms, RedCat is now the fourth biggest pub accommodation operator with 1,356 rooms and while Coaching Inn Group remains the jewel in our crown, both sides of the business are learning from each other.
“We now have in place a solid plan to ensure we keep improving. By investing in our estate – in upskilling our teams; delivering a great food, drink and accommodation offer and by supporting our people to provide truly great customer experiences, we are confident of success.
“The entire team is excited to see the reopening of the Castle of Brecon Hotel after a £3m refurbishment next month and we will be putting a further significant investment into capex projects in the coming months.
“We are looking to grow this year and are already in early talks to acquire several new sites as we believe there is now momentum in the business and plenty of new opportunity for us.”
