Redcape Hotel Group on Aug. 1 said it agreed to acquire the Pig 'N' Whistle Hotel, a top-ranking gaming venue in Queensland, for $11.5 million.

Redcape will fund the deal from its existing debt facility.

The hotel operator said the move will increase the company's exposure to the region's strong projected growth. It expects the transaction to bring the number of its portfolio assets to 33.

"While our growth strategy is predominantly focused on freehold assets with alternate land optionality, we also have the appetite to pursue quality value accretive leasehold opportunities that meet our investment criteria and align with our objective of growing and diversifying our earnings," Redcape CEO Dan Brady said in a statement.