Christie & Co has been accredited with the title of 'UK’s most active agent' in the leisure and hotel sector for five consecutive years. We're able to provide agency, advisory and consultancy advice across the board.
With 13% of family income spent on Recreation and Culture and a further 8% spent on restaurants and hotels according to the Family Spending Survey, UK families spend more on leisure services than all housing related goods and services combined.
Investors are increasingly drawn to the more attractive yields and returns this “Alternative” market offers, ensuring the market for well located and invested trading business, as well as primary and opportunity-led secondary investment opportunities, remains buoyant.
The leisure market continues to be dominated by Private Equity backed corporate operators and has seen ongoing high levels of Merger & Acquisition activity. Investors’ attraction to the sector means IPO’s are on the agenda once more (e.g. Pure Gym, The Original Bowling Company) and they seem particularly attracted to quality covenants including long term income opportunities as evidenced by M&G’s ground rent portfolio acquisitions of David Lloyd Leisure & Bannatyne Fitness.
The primary demand for UK leisure assets continues to be domestic, coming from a broad spectrum of buyers including operators, PE funds, Investors and HNWI’s. Portfolio interest has attracted overseas investors from the US and Asia - given the comparably strong economic platform of the UK’s leisure sector and the present attractive interest rate, we envisage will continue
Whether urban or rural, buyers of businesses and development opportunities in the leisure sector remain focussed on the best possible locations. Investment decisions can be influenced by many factors including access to funding, tenure, quality of asset, competition, demographics and accessibility, parking and footfall. Buyers will also be keen to exploit opportunities to increase trade and profitability via operational, investment and branding improvements, so businesses that present “upside options” are the ones most in demand. The Holiday Park, budget gym and bourgeoning trampoline sector, which has expanded rapidly to some 80 parks around the UK, continue to be highly sought after leisure sub-sectors.
While value for money real estate transactions located within central London remain exceptionally difficult to come by, along with the high costs of occupation, there is still significant demand for the best locations.
In provincial UK, we’ve seen overseas investors waking up to the opportunities that are on offer outside of London – quality businesses providing value for money are in demand and together with existing domestic buyers already keen to get a foot in the door, this is driving competition for these sites.
With a thriving sector with plenty of opportunity, operators, investors and developers require trade and market intelligence in the most granular of formats in order to assist their buying, selling and investment strategies. With Christie & Co, you'll have access to the UK’s largest team of agents and valuers in each of our sectors, providing you with accurate and timely advice to help you understand your investment opportunities. If you'd like to talk to us about your next step, please get in touch.