press release splash

King Sturge

HOTELS AND PUBS CHECK IN FOR A YEAR OF RECOVERY

Region‘s leisure property sector weathers the economic storm better than expected, says King Sturge
 
The South West leisure property market is faring better than other regions despite new hotel development falling off a cliff, according to John Kinsey, leisure partner at King Sturge.
 
But he said bank lending is difficult or non-existent and where finance is available, the market is being held back because in many cases the goalposts have moved from 80 per cent to 60 per cent of loan-to-value.
 
Nevertheless, Mr Kinsey told the firm‘s annual Bristol media briefing that despite being pummelled by the worst weather for years coupled with the deepest recession in a generation, the region‘s leisure sector had not witnessed the predicted industry “bloodbath”.
 
“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 said.
 
Turning to the pub market, Mr Kinsey said it had 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.
 
While the pub property market had endured a difficult time over the past year, he said, there are glimmers of hope that the bottom of market has been called.
 
“Competitiveness in the form of contract races is again becoming a feature in a rising number of recent purchases while ‘gazumping‘ and ‘gazundering‘ is also making a re-appearance,” said Mr Kinsey.
 
“Certainly where we have received disposal instructions from pub companies it has been very successful. Approaching 50 have been sold in the past year with most buyers retaining them for similar use. There has been some trading in leaseholds, but only for cash.
 
“When you take all these factors into consideration I think the region‘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               27th January 2010
 
For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk
| More