Hospitality sector sees high level of market activity
A leading player in the hospitality sector has released a report on the sector.
Christie and Co specialises in selling pubs, restaurants and hotels and is one of the busiest companies in the South West.
The agency has published a report covering the first six months of the year for the whole of the South West.
According to the agency there was a slight decline in sales volumes in the first half compared to the same period in 2022.
The high level of market activity driven by lifestyle buyers during the pandemic has begun to level out and recent interest rate hikes have reduced confidence.
A spokesperson said: “In some instances, vendor pricing expectations are yet to align with this sentiment, but values are generally holding up well and there is still plenty of demand for quality pub and restaurant assets across the region.
“Now more than ever, buyers are looking for robust pub businesses with multiple income streams, particularly letting rooms.
“We also noticed an increased interest in leasehold assets in the sub-400k market, which offer lower risk investment.”
Existing operators with confidence in their ability to maintain a profitable business made up the majority of the buyer pool.
The spokesperson added: “We are seeing less lifestyle buyers as the covid-effect falls away, however, the South West will always maintain a healthy level of interest from this buyer profile.
“Developers looking at alternative use options were also active and keen to secure opportunities in affluent locations.”