Market Insight: Hospitality in the Lake District

The Lake District is one of the most popular countryside destinations in the UK, attracting 18 million leisure visits a year. The landscape for hospitality businesses is vibrant and diverse, influenced by strong tourism, local community spirit, and a focus on providing a welcoming and enjoyable experience for both residents and visitors.

The area is home to a range of businesses, from traditional village pubs and cosy B&Bs to high street restaurants and large country estates. The region is also seeing an influx of industrial investment, such as BAE Systems and UK Nuclear, resulting in growing visitor numbers throughout the year and beyond the traditional tourist hotspots.

As such, the Lake District has much to offer for those looking to invest in the hospitality sector.

Hotels

We are seeing a variety of properties coming onto the market, including family-run guest houses in the country, boutique hotels in popular tourist villages, large hotels in towns which also attract business trade, holiday let properties, and wedding and event venues.

The region has something to offer for every buyer type. International hoteliers looking to invest in the UK are drawn to the area’s reliable tourist and ‘staycation’ trade. Existing hoteliers see the region as a sensible choice for expanding their current portfolio of assets. The Lake District is also attractive to lifestyle business owners, looking to exit the traditional 9-5 work pattern and open their own business in the countryside.

We are currently seeing demand for high quality hotel assets outstripping supply – so if you’re a hotel owner thinking of selling, it is likely there will be an abundance of potential buyers interested in your property. There is often a divergence between vendors’ and purchasers’ expectations in terms of valuations, which is why it is crucial to seek the advice of an expert hotel agent with experience transacting in the local market.

Pubs & Restaurants

Last year, the North West’s beer and pub sector poured more than £3.5 billion in Gross Value Added (GVA) into the economy and contributed more than £2 billion in tax in just one year, according to new research by the BBPA (British Beer and Pub Association).

The pub market in the Lake District is thriving, with a strong focus on local food, craft beer and wine. Many pubs are shining a light on homemade dishes using locally sourced ingredients and supporting regional producers. Some are also expanding their offerings to include events, festivals and live experiences. 

We are seeing a broad range of pub and restaurant stock on the market, including wet-led community pubs in town centres, traditional village pubs and coaching inns, and gastropubs with established dining offerings.

The pub with rooms market is experiencing significant growth, with operators increasingly incorporating accommodation to attract more customers and increase revenue. Consumer demand for pub stays is high, with many preferring to stay at pubs over other accommodation options due to the local and authentic atmosphere that pubs with rooms can offer. Online booking platforms like Stay In A Pub are facilitating this trend further.  

As a result, we’re seeing a lot of interest from potential buyers, including pub operators looking to enter the Lake District market or increase their stock levels in the area.

Challenges

Despite the economic challenges facing hospitality operators across the UK, many businesses in Cumbria continue to show very positive financial results.

The region can sometimes present unique ‘hurdles’ for business owners. National Park status covers much of the area, which helps protect and preserve the natural landscape, however this can mean stricter planning regulations when it comes to developing property. Some parts of the region are also very remote, meaning that business owners need to carefully plan their logistical operations and staffing arrangements.

House prices in the Lake District are reasonably high, due to area’s desirability, which can sometime result in overvaluation of businesses. It is important that anyone thinking about selling their hotel or pub considers their exit strategy well in advance of putting the business on the market.

Opportunities

The Lake District is continuing to attract hospitality investors due to its consistently high tourism numbers, beautiful landscape, and strong community spirit in towns and villages.

There is an increasing number of non-serviced accommodation businesses being listed for sale, such as holiday lets and destination venues, presenting opportunities for investors. We are also seeing particularly high demand for realistically priced pubs with multiple income streams across food, beverage and accommodation as these businesses are performing well.

Overall, we are seeing high demand for quality sites of all shapes and sizes. We recently listed two hotels where buyers were found within less than four weeks. The Kings Arms pub in Temple Sowerby also achieved multiple offers as soon as it hit the market and was purchased by an experienced hotelier with plans to renovate and enhance the offering further.

Graham Wilkinson lives in Windermere at the heart of the Lake District and has worked in the hospitality sector in the region for over 35 years.

Marslie McGregor works across Cumbria and the North East, specialising in the sale and acquisition of licensed and hospitality businesses including restaurants, cafés, bars and pubs.

To find out more about the hospitality sector in the Lake District, or for a confidential chat about your business, contact:

Graham Wilkinson, Agent – Hotels
P: +44 7561 114 986
E: graham.wilkinson@christie.com

Marslie McGregor, Agent – Pubs & Restaurants
P: +44 7813 072 460
E: marslie.mcgregor@christie.com