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Pubs with rooms: What buyers need to know

In this blog post, Marslie McGregor, Senior Business Agent - Pubs & Restaurants, discusses the growing demand for pubs with letting bedrooms and key considerations for potential buyers.

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Marslie McGregor

Marslie McGregor

Senior Business Agent - Pubs & Restaurants

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Despite ongoing pressures on the hospitality sector, including rising labour costs, business rates and inflation, pubs with rooms are outperforming many other models in today’s market and maintaining solid trading performances. By combining food, beverage and accommodation sales, these businesses benefit from diversified income streams that can offer greater security than single-focus venues.

Why are pubs with rooms so popular?

Pubs with rooms offer customers a cosy, authentic experience, that combines comfortable accommodation with food, drink, and a sense of local community on the doorstep. They can provide an alternative to larger, perhaps more formal hotels, offering guests a personal stay and often at a more affordable price point.

Many guests also enjoy the convenience of having a restaurant and bar on-site, serving high-quality food. They can relax without worrying about travel, enjoy drinks in the bar, and even purchase a bottle of wine before retiring to their room. For travellers, this means a complete dining and lodging experience; for operators, it means higher spend per guest.

Other reasons for their growing popularity include:

  • Historic charm and character - many pubs with rooms are former coaching Inns, oozing characterful features like exposed beams, fireplaces, with stable blocks often converted to provide more accommodation
  • Convenience - they offer an ideal for option short breaks and staycations as well as business travel
  • Personal, local experience - guests can interact with locals and get to know staff
  • Affordability - pubs with rooms can be more budget-friendly than traditional hotels
  • Dog-friendly options - pubs with rooms cater for pet owners seeking animal-friendly accommodation

Market momentum

The market for pubs with rooms has seen significant growth in recent years. The Pub Accommodation Review 2025, produced by CGA by NIQ and Stay in a Pub in partnership with Zonal and VisitEngland, reported that two thirds of operators say their accommodation revenue is higher (43%) or the same (24%) as a year ago, and 56% expect it to grow in the next year.

The report revealed that 67% of consumers feel pubs provide a better range of food and drink than other accommodation types, and 65% of those who stay in pubs or are interested in doing so are aged over 55, which shows that there is strong appeal among senior travellers.

The report also revealed that the average nightly spend is £106, however average stay length has slipped from 2.2 to 1.9 nights since 2023, reflecting how cost pressures are impacting consumer leisure activity.

These trends aren’t limited to traditional pubs: microbreweries and taprooms are also converting unused space into guest rooms, creating unique experiences that blend craft beer culture with boutique accommodation.

Challenges and opportunities

While the hospitality sector continues to navigate cost pressures and ongoing squeezes to profit margins, there is an opportunity for operators to solidify their businesses with a profitable revenue stream by expanding their offering into the pub accommodation sector.

Operators must balance hospitality and accommodation standards, ensuring rooms meet guest expectations while maintaining a vibrant pub atmosphere. According to The Pub Accommodation Review 2025, 83% of consumers say their top priorities when looking for pub stays are comfortable and clean rooms, followed by value for money (81%) and free parking (73%). 92% say reviews are important in their booking decisions.

Opportunities also lie in seasonal packages, event hosting, and digital marketing to capture the growing staycation market, and to attract younger demographics who may not yet see pubs as modern, stylish places to stay.

Appeal to operators and investors

For buyers in the market, pubs with rooms represent a balanced business model. Accommodation provides steady income, while food and drink sales offer flexibility and growth potential. In the last five years, Christie & Co has sold 168 pubs with rooms across the UK, highlighting strong demand in this sector.

Buyer profiles vary widely, and we are seeing interest from national pub companies looking to expand their estates, regional multi-site operators looking for strategic additions, and lifestyle buyers who are often local individuals seeking a change of pace and a business aligned with their passions. Corporate and private equity interest is also present, particularly in premium locations.

What’s the market outlook for pubs with rooms?

Demand for pubs with rooms is expected to remain high, driven by domestic tourism and consumers seeking experience-led stays. For owners considering a sale, presenting the property as a lifestyle business with multiple revenue streams is key. For buyers, focus on location, reputation, and potential for growth through events and marketing.

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Images: The Dirty Bottles - Northumberland, The Jack & Jill Coaching Inn, The Derwent Arms - County Durham, King Alfred hotel.

Case studies: Recent pubs with rooms we have sold

The Jack & Jill Coaching Inn, North York Moors

A Grade II listed 18th century coaching inn with nine en suite letting bedrooms, a large terrace, children’s play area and takeaway cafe. Recently restored, it was acquired by a regional multi-site operator who plans to elevate the established business. Its location near Scaling Dam in the North York Moors makes it a prime destination for tourists year-round.

The Woodman Inn, Burneston

An established village pub and restaurant featuring eight en suite guest bedrooms. Sold to an experienced operator who intends to maintain its strong reputation and build on its food and accommodation offering. Its proximity to Thirsk and the Yorkshire Dales ensures steady trade from both locals and visitors.

The Whitestonecliffe Inn, Near Thirsk

A 17th century pub and restaurant with six recently refurbished letting bedrooms. Purchased by a local business owner who plans to restore the pub and accommodation to its former glory. Its historic charm and location near popular walking routes make it a sought-after destination.

The Derwent Arms, County Durham

An award-winning country pub with rooms located in the North Pennines Area of Outstanding Natural Beauty. The property includes a lounge bar, restaurant, six en suite letting rooms, a self-catered apartment, and a large beer garden. Known for its seasonal menus and local ales, it also hosts weddings and private events. Recently sold through Christie & Co to Valiant Pub Company, which is expanding its portfolio of premium pubs in the North East.

The Dirty Bottles, Northumberland

A historic pub dating back over 200 years, recently transformed into a modern hospitality venue with boutique rooms. Under previous ownership, the business became a destination for both locals and tourists. It was sold to Greene King.

King Alfred, Cumbria

A striking Victorian Gothic-style property which opened in 1904, combining a popular bar and restaurant with ten en suite letting rooms. Under previous ownership, the business attracted both locals and visitors, becoming a key hospitality destination. Recently sold to Dorbiere, who plan to refurbish and enhance the accommodation offering.

For more information about the market or for confidential advice about buying or selling a pub with rooms, get in touch with Marslie McGregor: Marslie.McGregor@christie.com, +44 7813 072 460.

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