£12.5m investment helps holiday park business drive expansion

Warwickshire-headquartered holiday park business Allens Caravans is expanding its footprint of caravan parks across England and Wales after securing a £12.5m funding package.

Allens Caravans provide a range of luxury holiday home and permanent residential accommodation at eight countryside and coastal locations. In the latest phase of its expansion, the business has widened its presence using the seven-figure loan from Lloyds Bank to complete the acquisition and development of two new flagship sites in Aber Bay in Wales and Bredon View in Worcestershire.

Since the site developments began, the business has expanded its workforce, adding eight people to its headcount at Bredon View and 20 new staff members at Aber Bay.

Part of the finance package is being used to redevelop the Aber Bay site, on the doorstep of Clarach Bay, which was bought by Allens Caravans in 2017. The investment will bring an additional 57 plots to the site’s existing offering, taking its total number of caravans to 217.

The extensive redevelopment will also include the build of a new beachside clubhouse, an indoor swimming pool, bar and restaurant, and a rooftop terrace, making it a well-equipped and luxury offering away from home.

The business’ new Bredon View park near Pershore, opened to the public earlier this year.

As well as ongoing investment and expansion at its new sites, Allen’s Caravans has also invested in new digital solutions to improve the efficiency of its operations. This commitment is helping the £24m turnover business to further increase profitability and improve its customer experience, in line with increasing levels of online bookings.

John Russ, sales director at Allens Caravans, said: “We’ve seen a real boom in demand for our accommodation in recent years as UK holidaymakers’ enthusiasm for luxury staycations continues to gather pace. Bringing these additional sites to our portfolio marks the latest phase of our ongoing expansion ambitions, and we remain committed to rolling out continued investment in our parks.

“What’s more, with 79 per cent of total revenue for the UK travel and tourism market expected to be generated by online sales by 2026*1, we also needed to invest in our digital service offering to better meet the needs of our customer booking habits.”

Paul Warrington, relationship director at Lloyds Bank, said: “The UK caravan industry is expected to surpass pre-pandemic levels of revenue over the next five years*2, as the staycation boom shows no sign of easing. Allens Caravans is an example of a business that already has an excellent reputation in this growing market and this expansion brings additional capacity to the firm at a time when they’re seeing continuing strong demand for their services.

“Working with the business to acquire and develop their Bredon View and Aber Bay sites has been a pleasure, and we are committed to being by their side as they look towards future investments and developments.”