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“BLOODBATH” AVERTED IN SW LEISURE SECTOR

Region‘s pubs, hotels and restaurants held up well against harsh economic conditions, according to King Sturge

Despite being pummelled by the worst weather for years coupled with the deepest recession in a generation the South West leisure sector has not witnessed the predicted industry “bloodbath”, according to an expert.

John Kinsey, leisure partner at King Sturge, said the fact that banks are now choosing to support the industry rather than carry out wholesale repossessions meant the market was growing stronger by the day.

“At the end of last year it was widely predicted by many industry experts, including commentators in some of the banks themselves, that we were heading for a major realignment in the leisure market,” he said.

“But, as we reflect on 2009 in the South West and the all-important summer period, the fact is we have not seen anything like that.

“That‘s not to say it hasn‘t been a tough year, but in 2008 all the talk was about mass repossessing of leisure businesses by the banks and that just hasn‘t happened to anything like the scale predicted.”

He added: “It didn‘t help that the sun only made a few fleeting appearances during the summer months, but even that doesn‘t appear to have dented the market too badly,” he said.

To illustrate his comments, Mr Kinsey pointed to the pub market which has been hit hard over the last few years by a number of factors, including the smoking ban and availability of cheap supermarket booze, all of which led to media reports that the industry was on its knees as pubs closed at a rate of five a day.

“In the last year we have sold 40 freehold pubs with plenty of elements of ‘gazumping‘ and ‘gazundering‘ evident which, to me, highlights the market‘s competitiveness,” he said. “And while some property consultancies have been downsizing their teams here at King Sturge we have actually had to expand the team to deal with the growth in business.

“When you take all these factors into consideration I think the South West‘s leisure market has done remarkably well in the face of very adverse market conditions, all of which bode extremely well for the sector as the UK finally looks to be over the worst of this recession.”

ENDS   2nd December 2009

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk