Australia Beverages: Insights from a recent pub conference – relevant to EDV + EVT

Research evidence excerpt

Australia Beverages: Insights from a recent pub conference – relevant to EDV + EVT

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16 Jul 2026 09:26:02 ET │ 18 pages

Australia Beverages

Insights from a recent pub conference – relevant to EDV + EVT

CITI'S TAKE

Sam Teeger AC

We attended an Australian pub/hotel conference this week and have come +61-2-8225-4319

away positive on the outlook for Endeavour’s Hotels business as 1) on- sam.teeger@citi.com

premise (+7.2% MAT growth to Mar-26) continues to outperform off-

premise (-1.1%) liquor consumption as consumers gravitate towards Eileen Li

drinking as part of an event/experience rather than at home, 2)

accommodation is a margin effective revenue diversifier that boosts the

core F&B offering and supply/demand dynamics that favour upward

pressure on room rates in Australia, 3) valuations for pubs continue to stay

in low cap-rate territory despite higher interest rates which benefits

Endeavour’s $1bn+ property portfolio, 4) cost pressures have risen in recent

years however AI is a tailwind for improving efficiencies and reducing

wastage whilst some costs can be offset by taking price around

events/occasions where consumers are less price-sensitive, 5) operators

are diversifying away from gaming to mitigate regulatory risks (however

gaming revenue is still important for profitability).

These trends are positive for Endeavour Group which is investing in its large hotels

business (ALH Hotels) (46% of 1H26 earnings before interest, tax and significant

items) which has outperformed its off-premise liquor retail business for several

years. Endeavour is investing in its hotels business with four DAs lodged, two

approved and more in preparation for additional accommodation and onsite

supermarkets as at January 4th 2026. Endeavour is also accelerating its hotels