10/07/2017
Click here to download the UK Leisure Sector - Q2 2017 summary
Summary
In this quarter change has been afoot politically, with a snap election resulting in a minority Government. The discussions to vacate the European Union continue, as the tourism reaps the benefits of a weakened pound. Visa's UK Consumer Spending Index revealed that April saw a 9.2% spending increase across the hotels, bars and restaurants sector. Customer spend in the late night leisure market increased in the period between February to April by 6.3%.
Staycations increased over the Easter holidays this year by 10%, in comparison to last year, with the most favoured destination being Cornwall, in keeping with what is likely to be a move to save money due to the weak exchange rate. London's hotel revpar was £127.24 in May, and according to STR, this is the highest on record for the month. The capital's hotel performance also saw a 7% increase in average daily rate as well as just under a 2% year-on-year increase in occupancy.
July 2017 marks the 10 year anniversary of the Smoking Ban and according to Cancer Research UK, Britain has 1.9 million less smokers than in 2007. Particularly notable is the effects on hospitality staff, the 2007 ban has made a significant contribution to making the hospitality sector yet a more desirable career choice.
Transactionally the cinema market has been fluid with deals; Everyman Cinema purchased a leasehold interest in York from Reel Cinemas. Reel Cinemas stated that this was a move to release value and have recently taken a lease in Blackburn Town Centre on a complex that willbe built by the Council by 2019. Light Cinemas are also aiming for expansion to secure a 5% UK market share by 2021, having recently secured a unit featuring 8 screens at the CastleQuay Shopping Centre in Banbury.
Marston's have been active this quarter completing the acquisition of the Charles Wells Brewery and brands for £55 million.
UK Leisure Sector Q2 2017 Highlights
April 2017 -
Restaurants: Le Pain Quotidian year end turnover increased from £34,276,593 to £38,192,273 by 11%. Sites have grown to 28.
Hotels: South African-based investment manager Fairtree Capital has purchased three hotels in the borough of Torbay in Devon, southwest England, from the Duchy Hotel Group for £12.5 million (£42,400 per room). The portfolio includes the 78-room Headland Hotel in Torquay, the 141-room Palace Hotel in Paignton, and the 76-room Queens Hotel, also in Paignton.
Restaurants: Private equity firm Graphite Capital is selling it 45% stake in Corbin & King, which operates seven restaurants in central London, including the Wolseley which saw like-for-like sales increase 1.5% to £12,564,000 in the year to March 2016.
May 2017 -
Leisure: Light cinemas announced a move to quadruple their number of sites by 2021.
Restaurants: Corbin & King reported turnover of an overall increase across all sites, with theexception of The Dalauney which was effected after a fire in Kingsway.
Pubs: Charles Wells Brewery has been acquired by Marston's for £55m plus working capital adjustments.
Pubs: £3.78m raised by West Berkshire Brewery to complete the new brewery in Yattendon and fund future plans for expansion.
Pubs: City Pub Company plans to raise between £15m-£20m through the AlternativeInvestment Market on the London Stock Exchange.
Pubs: Laine Pub Co bought New Pub Company; with only one public house excluded from the sale - The Telegraph in Putney Heath.
June 2017 -
Leisure: The Deltic Group will invest £8.1m in 15 sites in their estate of 57 venues.
Pubs: Comparisons from last year, between February to April, highlight that the Late Night consumer spend has increased by 6.3%. This totals £55.56 per person.
Leisure: The casino operator Genting UK reported a pre-tax profit of £29.4m (2015 showed a loss of £55.6m) and a turnover of £319.7m.
Pubs: Heineken have offered to potentially dispose of some public houses in the 33 areas that are of concern to The Competition and Markets Authority.
Leisure: David Lloyd Leisure acquires The Academy Health Club and Spa in Harrogate from Academy Leisure. The property being converted from a former National Power Training Centre and sub-station in 1994, extending to 65,309 sq ft.
Contact Details:
Elysia Wilson-Gunn
Associate
T: 020 7280 4747
M: 07810 541 579
E: elysia.wilson-gunn@fleurets.com
Graeme Bunn
Managing Director
T: 020 7280 4740
M: 07776 208085
E: graeme.bunn@fleurets.com