09/01/2015
Click here to download the UK Leisure Sector - Q4 2014 summary
Summary
The last three months of 2014 continued the trend of a buoyant market, particularly in the hotel sector where several keys deals were witnessed, most particularly the acquisition by KSL Capital Partners of the 25 strong group of De Vere's Urban Village Resort hotels. Shortly after this deal, further De Vere hotels were sold including the six former De Vere Hotels and De Vere Luxury Lodges purchased by Sankaty Advisors and Canyon Capital Advisors, the backers of QHotels. The deal completes the disposal of the De Vere Group, following the disposal of De Vere Venues to Starwood Capital Group earlier in the year.
Q1 2015 also looks set for a key deal following the appointment of agents by RBS and the private equity firm Patron Capital to sell a 31-strong portfolio of UK hotels. The regional mid-market hotels operate under the Mercure brand and total 3,177 rooms. City analysts have suggested the groups value is around the £100m mark. The portfolio includes 26 Mercure sites operated under a franchise agreement with Accord, the brand's French owner. A further five Choice hotels in East Anglia were added to the portfolio in March this year.
The pub sector also witnessed events, which took many observers by surprise. In November, the Government was defeated in a Commons vote on the control that tenanted pub companies can exercise over pubs. MPs voted 284 to 269 in favour of an amendment to the Small Business Enterprise & Employment Bill that, subject to Royal Assent, will permit Pubco tenants to choose between a tied agreement and a free of tie market rent-only agreement. When this passes into law the amendment will mean that tied tenants will be able to ask their large pub company (those with over 500 pubs) to make them free of tie at their next rent review, paying only a new free of tie rent on the property.
Contacts:
Graeme Bunn
Director
T. 020 7280 4740
E. graeme.bunn@fleurets.com
Martin Willis
Managing Director
T. 020 7280 4759
E. martin.willis@fleurets.com
Click here to download the UK Leisure Sector - Q4 2014 summary