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savills.co.uk/leisure

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I N T R OWelcome to the Autumn/Winter edition of Aspects of Leisure. 2017 looks like being a year when, despite economic and political uncertainty, property markets have proved to be more resilient than expected. Certainly in the leisure sector, the weakened Brexit pound has had the effect of boosting the financial performance of many businesses and the outlook remains positive.

There has been no significant adverse effect on the transactional markets, nor on funding, and the weight of investment seeking returns from the property sector does not appear to be diminishing. It is true to say that the exceptional prices paid for some properties over the last few years, particularly by foreign investors, have largely disappeared from most sectors but commercial buyers have the confidence and ability to buy, supplementing the lifestyle buyers and private equity backed companies continuing to invest. In general the markets remain firm.

In this edition we look at sports grounds, the golf market both in the UK and abroad, the hotels market and a focus on the south-west leisure market. As a fringe subject, we also include an overview of Savills Archaeological services.

Whether you’re an established leisure operator or new to the leisure sector considering an investment, we think you should find something of interest here.

Ian Simpson Head of Department

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S P O R T S G R O U N D S / / 0 4 H O L I D AY C A R AV A N & L O D G E PA R K S / / 0 6 T H E S O U T H W E S T L E I S U R E M A R K E T / / 0 8 P U B S / / 1 0 E U R O P E A N G O L F / / 1 2 G O L F / / 1 4 H O T E L S / / 1 6 S AV I L L S A R C H A E O L O G I C A L S E R V I C E S / / 1 8 H O L I D AY C O T TA G E S / / 1 9

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S P O R T S G R O U N D S

Statistics suggest that 20% of the population are obese and if the current trends of weight gain continue almost three quarters of the population will be overweight by 2035. As we all know this is putting pressure on our already over subscribed health services.

These worrying statistics about the nation’s health mean that the need to eat healthy and exercise is more obvious than ever. Encouraging the population to be involved in sports is an important part of this goal and one that Sport England is encouraging. More and more of us are turning to the gym for convenience and body building and it is by far the fastest growing area of participation. It is estimated that 15.6 million of us regularly take part in sport, with 1.75 million fewer women than men.

Around 1.85 million people play football, 196,000 participate in rugby union, and 180,000 play cricket on a weekly basis. These participants make use of facilities owned by communities, schools, local clubs and professionals clubs and businesses alike.

In Britain we have fewer sports grounds than we used to. Sports grounds provide attractive development opportunities, because they are usually in a built up area and are often well positioned for housing development. The Conservative government are known to have sold over 10,000 playing fields during their time in office between 1979 and 1997, and since then successive governments are reported to have sold around 20 per year. Local Authorities are under financial pressure due to austerity to dispose of assets and community sports facilities are one area which has felt the squeeze.

S P O R T S G R O U N D S VA L U E S A R E D E R I V E D D E P E N D I N G O N T H E A S S E T, U S E , A N D L O C AT I O N

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According to Sport England, the government body whose job it is to reject development which negatively affects sports provisions, out of all concluded planning applications that involved a playing field in 2014 to 2016 around 91% resulted in improved or secured sporting facilities. This shows some slow down in loss of facilities.

Sports England have produced guidance for clubs and community groups to take action if they are concerned that their sites are at risk of being sold for development, mothballed or closed. There are now community rights to protect the local sports pitches, pavilions, sports hall or swimming pool and for them to be listed as an Asset of Community Value which protects them from development. Local authorities are also becoming more interested in rights for communities to bid to buy the facility or agree to a transfer as this reduces the bill to the Local Authority.

Sports grounds have their values derived in a number of ways depending on the asset, its use and location. Approaches can include the investment method where the property is let, the profits method where there is a profitable business, and comparison to other properties with similar characteristics. Savills are happy to provide valuations for all purposes on assets in this use type.

Savills Leisure team’s recent work has included valuing community sports assets including a semi professional rugby club, a local bowls club, football playing fields owned by a semi professional football club and a well known tennis club. We also provide professional advice and are currently supporting a local parish council argue against an increase in the rent of their cricket field.

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Recent market reports across many property sectors including the residential housing market have described the market in an uncertain or negative light. However, the opposite could be reported on the holiday parks sector as the industry is experiencing growth and a continued sense of optimism from operators and caravan manufacturers. According to the NCC manufacturing of holiday units is on the rise as their members have reported a 7% increase in relation to dispatches of static caravans and lodges to UK holiday parks. The total number of units dispatched over a 12 month period (summer 2017) was 21,075 which is a significant improvement on the previous year figures of 19,575.

H O L I D AY C A R AVA N & L O D G E PA R K S

I N G E N E R A L T H E H O L I D AY C A R AVA N PA R K M A R K E T R E M A I N S R E S I L I E N T I N U N C E R TA I N T I M E S

It has been 10 long years since the effects of the Global Financial Crisis (GFC) were first felt in the UK and investors have become accustomed to difficult market conditions. The one synergy shared by the leisure market and that of other property sectors is its reliance on banks to fund property transactions. The banks have had an on and off relationship with holiday parks over this period which has resulted in lenders taking a more cautious approach to lending even though trading conditions for holiday parks are at a 10 year high. Buyers of parks are noticing stricter lending criteria than 10 years ago with perhaps the greatest obstacle being significantly lower loan to values with buyers required to find additional funds to be able to raise a deposit. This has had the greatest impact on lifestyle buyers typically seeking smaller holiday or touring caravan parks of in the region of 100 pitches or less.

Larger parks of say 200 plus holiday units have continued to receive strong interest from private equity investors and as a result the demand for larger parks is significantly higher than that of lifestyle parks.

In general the holiday caravan park market remains resilient to uncertain economic conditions and continues to demonstrate growth, drawing positives from the continuing Brexit negotiations, the ensuing economic conditions and atrocities abroad in key tourism locations such as the August 2017 Barcelona attacks. Holidaymakers are adopting a trend of staying closer to home whether for security or economic reasons with exotic holidays no longer being their sole priority. The larger operators within the industry are heavily investing in their parks

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and attacking emerging markets with gusto. By providing more up market caravan, lodges or glamping units often with enticing extras such as onsite facilities or private hot tubs, operators are able to offer a new holiday experience which is a far cry from the budget breaks often associated with holiday parks. Holiday letting firms such as Hoseasons are thriving offering significant returns to park operators, not only for single holiday caravans but in particular lodge units resulting in many operators adopting a hire fleet to boost revenue.

The end of the holiday season is approaching for many parks and the caravan park market is looking buoyant, as this is typically the time of the year where buyers come out from the woodwork proactively seeking parks. Demand at this time is exceptionally

P R O P E R T Y S H O W C A S E

For Sale: Confidential Holiday and Residential Park

Guide Price: £6 million

Location: Lancashire

Developed to accommodate 94 residential mobile homes and 121 holiday static caravans and lodges. Main building to include club with 2 bars, function area, indoor swimming pool, sauna, coffee shop, office & entertainment centre (EPC - C). In all approximately 18.431 acres (7.459 ha).

R E C E N T S I G N I F I C A N T T R A N S A C T I O N S W I T H I N T H E I N D U S T R Y:

Pentney Park, a family run park, was sold to Darwin Leisure Group by Savills in June 2017. The group are well known for developing upmarket holiday parks. The park was developed for circa 200 touring caravans and Darwin will be undertaking a scheme of redevelopment to upgrade the property to an upmarket holiday park.

Park Holidays (UK) Ltd acquired Carlton Meres Park a 300 pitch park in East Anglia increasing their current portfolio to 19 parks.

Acquisition of Island View Holidays, Isle of Wight for £11m by a private equity company AG Holidays Parks.

high but with a distinct lack of parks on the open market, the combination of low supply and high demand has transformed the marketplace from a buyer’s market to a seller’s market. Many park operators are now taking advantage of these conditions seeking to sell their parks confidentially, often resulting in a number of buyers competing for the same property.

We are optimistic about the market conditions for the holiday parks sector in the short term and looking forward to the 2018 season. The outlook is positive, and an increase of parks to the market over the autumn should help to satisfy the considerable demand. If you are actively seeking to purchase a holiday park we would recommend speaking to your agent to see what they have confidentially available.

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The south west leisure market is continuing to thrive with park operators consistently reporting a strong trading season to date.

We are currently experiencing a surge in supply of investors looking to enter the leisure market, a number of whom are focusing their searches on the south west of England. The majority are backed by private equity investors so are well funded with significant levels of capital that they are not able to deploy. The difficulty that such purchasers are having is that there are very few small groups of parks in existence, and those that do exist simply to not wish to sell in such strong trading conditions. The south west leisure market in particular was hit very hard by the most recent recession and took a long time to recover. Now that market conditions

have improved and stabilised over the past few years most park operators are keen to further develop and enhance their business to cater for the strong levels of demand that are currently being experienced.

The supply of capital that has been allocated for investment into the south west leisure market far outweighs the current supply of sale opportunities.

There are two separate categories of purchaser who are most active in the market at present. The first are those who are new to the market and appear to be focusing on rapidly establishing a presence in the sector,

with the view to developing and expanding this further over a period of 3 to 5 years. Such purchasers are focusing on the existing trading abilities of the businesses in question and the ability to improve on this over time as a result of significant capital investment.

The second type of purchaser are existing park operators who are looking to expand their leisure portfolio, specifically focusing on parks that have development opportunities. Such purchasers are willing to speculate on development opportunities and under-trading parks that have redevelopment potential.

Whilst the outcome of the currently unsettled economic climate is yet to be established, the British holiday sector is showing no signs of slowing down.

T H E S O U T H W E S T L E I S U R E M A R K E T

T H E B R I T I S H H O L I D AY S E C T O R I S S H O W I N G N O S I G N S O F S L O W I N G D O W N

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L E Y C R O F T V A L L E Y H O L I D AY SF O R S A L E

Log cabin, tree house and bungalow holiday park set within a wooded valley on the outskirts of Perranporth in north Cornwall. 26 of the units are owned by the park and operated as a letting hire fleet through Hoseasons as part of their Autograph lodge Holidays Collection. For sale with a guide price of £3m.

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It is estimated that 1,200 pubs will close in 2017. However, use of Assets of Community Value and loss of permitted development rights mean fewer are being sold for alternative use. The pub sector is expected to grow by 1.5% and, in a declining market of 2.1%, this means real growth of 3.6%. Is this enough to counter the increasing costs pubs face?

The post-recession consumer has become more discerning, but despite current economic pressures, is still spending in pubs. Eating out is now a way of life and around three quarters of adults regularly dine outside the home. Despite high rates of food cost inflation, many pub operators are capitalising on the growth in eating out, with the sector taking an increasing share of market. The proportion of food sales accounted for by the largest pub operators (see below) highlights this. At Fuller’s, food sales have been boosted by its purchase and roll-out of the Stable pizza brand.

Despite Brexit-related uncertainty, pub operators have not identified a particular impact on trade and transactional activity appears unaffected. In the 2016 ALMR Benchmarking Survey, 64% of respondents said the impact of Brexit would be broadly flat. However, the wholesale cost for imported beers has increased, putting pressure on profit margins.

Operating costs continue to rise, mainly linked to the National Living Wage (NLW), apprenticeships levy and the new rates valuation list which has had a particular impact on pubs in the South East.

Additionally, beer sales volumes have declined for a number of years. BBPA figures show a 2.7% decline in Q117 compared to a 2.8% increase in off-trade sales, most likely linked to changing consumer preferences and availability of cheap supermarket product. Fuller’s and Martson’s have reported they would need LFL growth of 4% and 2% respectively to offset these costs.

Despite these factors, the pub market appears to be in its strongest position for many years. Average weekly sales continue to rise in most instances with operators in London and the South East producing some of the strongest LFL sales growth (see table opposite).

P U B S

T H E P U B M A R K E T A P P E A R S T O B E I N I T S S T R O N G E S T P O S I T I O N F O R M A N Y Y E A R S

O P E R AT O R F O O D A S % O F T O TA L S A L E S

Mitchells & Butlers 51%

Greene King 40%

Marston’s Managed 60%

J D Wetherspoon 35%

Fuller’s 32%

Young’s 29%

The 2017 ALMR Benchmarking Report shows operating costs surpassed 50% of turnover for the first time (at 51.5%). BBPA statistics show costs rising in most business types, but actually decreasing for larger businesses (see below):

Business Type 2017 2016

Small Community c£4k pw 37.3% 34.8%

Community Wet led c£5k pw 36.4% 32.8%

Community Wet led c£8k pw 37.0% 33.0%

Community Wet led c£12k pw 33.2% No Data

Rural Character c£5k pw 40.3% 39.1%

Rural Character c£8k pw 40.0% 39.7%

Town/Country food-led c£10k pw 37.2% 42.3%

Town centre pub/bar c£10k pw 35.6% 37.7%

Greene King 0.4% 1.10%

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Demand continues to outstrip supply for freehold and free of tie leases. In London, this has led to an increase in rents on free of tie leases. Rent as a percentage of turnover has remained at similar levels compared to 10 years ago, despite the increase in operating costs and pressures on margins.

Operators are working hard to mitigate these factors by widening their offer to draw income from craft beer, food (including breakfast and coffee) and accommodation.

Pub Company % change 2014-2015

% change 2015-2016

Young’s Managed 10.0% 7.95%

Young’s Geronimo -2.6% 0.21%

Fuller’s 8.2% 9.75%

Marston’s 1.5% 3.08%

Whitbread 2.2% 2.51%

Stonegate 1.0% 4.22%

JD Wetherspoon 4.7% 8.22%

M&B 6.4% -0.10%

Greene King 0.4% 1.10%

The ALMR reported that accommodation saw the largest LFL growth by market segment of 5.1%. Fuller’s, Marston’s and Shepherd Neame have all reported a positive outcome from adding more letting accommodation to their estates.

The number of UK breweries rose to circa 1,700 over the past year as the surge in popularity of craft beers continues. Yet as craft beer still only accounts for 4.3% of total beer sale volumes, there is room for further growth.

This has also created additional competition for Britain’s traditional brewers. Given the tax advantages, medium sized brewers have felt the squeeze. Thwaites licensed its popular Wainwright and Lancaster Bomber brands to Marston’s in 2015 and now only brews niche ales for its pubs. Small brewers BrewDog and Dark Star are branching out into pubs, seeing them as an important route to market.

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The number of golf courses in Europe has more than doubled between 1985 and 2015, with the majority of growth prior to 2005, and only gradual increase in the latter ten years. The number of registered golfers has followed a similar trajectory, with a slight decrease since 2010. Whilst many sources cite this as being due to the financial crisis there have been a number of articles and research which suggest that the underlying picture is more complicated than this and reflects a myriad of factors.

The HSBC 2020 survey (dating to 2012) envisaged the future of golf as being more international, with broader participation, a more flexible game, more accessible, more technologically engaged and with more courses being sustainable in design and operation. We are now three years away from these projections and whilst the game is certainly exploring opportunities

with technology and ways to attract more players, there appears a way to go. The PGA Tour has engaged with millenials through social media content and suggests that the percentage of millennials that play golf (28%) mirrors that of group’s percentage of the total population, although they only play half as frequently as previous generations. Sustainability is a concept that is considered in many courses, if only due to the economic considerations that arise from heavy irrigation, numerous bunkers and chemical treatments. A sustainable course aims to maximise a golfer’s enjoyment all year round and where sustainability aims and economic gains co-inside then it would be foolish for owners not to work and develop in this manner.

Spain and Portugal have long been popular golfing destinations but France and Germany are increasing their number of

golf courses whilst offering a very different setting and topography of course in general. Other destinations which have made an entry include the Czech Republic.

Will Brexit impact the golf industry at all? Golfers were quick last year to discuss the implications for the Ryder Cup – none apparently, given that the UK remains within the continent of Europe and therefore able to compete as such. Other long term impacts have become no clearer, with only immediate economic differences visible – prize money switching to dollars with the drop in the pound, cheaper British golfing holidays for visitors and more expensive trips abroad for Brits. Taxation is likely to change and alterations to VAT laws could affect clubs in regard to member and visitor fees for non-profit making members’ clubs.

E U R O P E A N G O L F

W I L L B R E X I T I M PA C T T H E G O L F I N D U S T R Y AT A L L ?

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Savills currently have two European Golf courses on the market:

Oceanico is a portfolio which includes two signature golf courses, over 300 holiday properties, leisure facilities, and development land – featuring Amendoeira Golf and Leisure Resort; Belmar Spa and Beach Resort; Baia da Luz Residential Resort; Estrela da Luz Leisure Facilities;

Jardim da Meia Praia Leisure Facilities; Flor do Mar Holiday Resort development site; and Royal Obidos Holiday Villa development site (located on Portugal’s west coast, by prominent Royal Obidos Spa and Golf Resort). Offers are invited.

The other, Carton House Hotel & Leisure Resort, is for sale at a guide price of €60m through our Dublin office.

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Num ber o f o f f icia l go lf co ur ses in Eur o pe f r o m 1985 t o 2015

1985 1990 1995 2000 2005 2010 2011 2013 2014 20150

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4.11 4.144.27 4.33 4.33

4.44 4.39 4.394.15 4.14

Num ber o f r egist e r ed go lf e r s in Eur o pe f r o m 1990 t o 2015

( in m illio ns) *

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '13 '14 '150

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No one can deny that times have been better for golf course finances. Pressures on turnover are manifold – an older playing membership as easier to learn and less time-squandering sports successfully compete for the UKs disposable £, the clubhouse bare and restaurant buzzing only when a management-organised event is on, the proshop outgunned by the internet and discount stores........I could go on but there is the costs side to consider too. Club loyalty is no longer a facet of golf – if quality falls so does the membership so cutting staff and maintenance costs, and failing to meet the increasingly high modern standards, is risky. Pressure on margins is

unforgiving and many clubs have forseen the time when their players will no longer accept the subscription/green fee rises necessary to support the business.

Enterprising owners have made efforts to increase their player base through subsidising juniors and teaching, attracting societies and casual golfers, providing additional facilities such as driving ranges and hi-tech indoor course play – others have widened their non-golf spend through events and functions, weddings, restaurant, shop, adventure golf, gym and spa, accommodation and so on.

It’s not easy to get it right, nor is it always successful, and widening the appeal of the facility will always involve more investment and risk. For many golf courses the business will not improve until the number of courses contracts to meet available demand permitting turnover to rise without hitting the pocket of the individual player.

So what options are open to the owner who has done all he feels he can with the existing facilities and is not convinced that further investment in widening the business is going to provide a prudent return? What will attract an investor/buyer to put their own equity into the property?

G O L F

S O , Y O U R G O L F C O U R S E M A K E S N O F I N A N C I A L S E N S E – W H AT N O W ?

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Well, here are some things to consider based on Savills experience.

• There is a housing shortage at present. Developers are keen to talk to golf clubs next to, or in, towns and cities to gain residential development on some or much of the course. They will either use spare land not fully used by the golf course and seek residential development on that, possibly building replacement club facilities, or privately buy and upgrade a nearby course to move the membership to. This not only puts money into the owner(s) pocket, but if the course is closed, or reduced to 9 holes, also reduces the supply of golf courses thereby improving the revenues of all local courses, and assisting a national housing problem. But the course does have to be in the right place as does any target course to be upgraded. It can and is being done around the country – see what the Royal Norwich Golf Club and the Weston Longville Golf Club are achieving.

• On a smaller scale, the course could simply be closed, selling the land at agricultural/pony paddock prices and seeking an alternative use for the clubhouse and greenkeepers buildings. Government Housing and Planning policy is supportive of change of use for existing buildings generally and agricultural prices remain strong at present. A word with the planning officer may help achieve a greater price than the golf course in existing use can command. As examples see what the Kent National Golf Club, and Austin Lodge Golf Club have become.

• If the course is in the South of England it may be suitable for a vineyard. The soils, aspect and location must be right but on the other hand, the number of opportunities for the vineyard and winery development are few and far between, and buyers are out there. Mannings Heath Golf Club is not the only one to go in this direction.

• Is the course in a location where a health and fitness/golf/hotel would be a success? Proximity to a large conurbation, and planning potential for at least 100,000 square feet of new build might well attract the few buyers in the marketplace so long as there is no branded facility closeby. Look at what The Club Company are achieving with their portfolio.

• Consider talking to lodge and holiday park developers as there is strong demand for low cost lodge-type accommodation at present. If the planners will play ball there may well be an opportunity in this sector. Take a look at South Winchester Golf Club.

• Adventure golf/crazy golf developers are keen to open new courses. Again location is key but this is a very popular entry point into golf and doesn’t require a lot of ground. See what Hersham Golf Club have put in and they’re one of many.

• Has any thought been given to the prospect of mineral extraction? Gravel in particular is a scarce resource but it’s not the only one and if the course overlies such a valuable resource the medium to long term value can be rewarding. Canford Magna Golf Club is a good example.

• Rather than taking out the substrata, a good number of golf course owners have used their courses to accept inert waste, generally sorted and graded construction waste, and created a new interesting landscape. Where there is a good source of material, exceptionally attractive courses have been made from what were previously fairly dull holes, and providing a handsome capital sum for the golf course owner at the same time. Examples include Wavendon Golf Club, and North Weald Golf Club.

Or of course the golf club could always be let to a third party, or offered to the market as it stands. The rental market is reasonable and profits are not always the driver for a golf course purchaser – indulging their hobby through ownership is a feature of the UK market at the moment and has been for several years.

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The UK hotel market has had a strong start to the year with the first half of 2017 transacting circa £2 billion. Individual sales accounted for 92% of transactions by value (£1.8 billion), where appetite for big-ticket lots has been particularly hot. Many of these were international buyers accounting for 59% of transactional value (£1.2 billion), compared to the £822 million transacted by domestic investors.

The UK has always been viewed as a ‘safe haven’ for foreign investment into real estate, but in the current UK hotel market, it appears overseas investors are set out to profit from more than capital security.

The appeal of any hotel begins with the attraction of guests. Whether corporate or leisure focused, UK hotels continue to prove popular with visitors as nationwide occupancy rates remain strong at 77%, and Average Daily Rates continue to increase, we note a 3.3% three-year Compounded Annual Growth Rate (CAGR). This is in spite of the headwinds of the last six months such as the general election, terrorist attacks in London and Manchester and the ongoing uncertainty following Brexit.

In the regions, domestic demand continues to drive improving hotel market performance. With the weakening of the Pound since the EU referendum, overseas travel has become more expensive and leisure seekers have consequently focused their attention to the UK. According to Travelodge’s 2017 Holiday Index, 55% of Britons are planning a ‘staycation’ this year and are set to contribute £17 billion to the UK economy in 2017.

Popular destinations for Britons are dominated by the UK’s coastal destinations including Devon, Blackpool and Norfolk, and transactions in the hotel market to overseas purchasers have followed suit. We note the sales of The Imperial Hotel, Blackpool to Singapore-based Fragrance Group and the Duchy Hotels portfolio to South African FairTree Capital as two examples earlier this year.

In London, it remains all about the overseas tourists. 2016 saw 19.06 million international visitors to the Capital, an increase of 4.4% CAGR since 2010. VisitBritain further recognises that the USA and Europe continue to visit the UK most, with Asian visitor numbers rapidly growing in light of the simplified visa system. Over the last decade, London hotel’s Revenue Per Available Room has closely tracked overseas tourist arrivals. As projections for international visits look set to grow, London hotels are set to out-perform historic highs and support a strong transactional market.

H O T E L S

O V E R S E A S I N V E S T O R S B O O S T T H E H O T E L M A R K E T A S T H E U K B E C O M E S ‘ T H E P L A C E T O V I S I T ’

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Demand for London assets remains at an all-time high despite the scarcity of stock pushing. This is pushing high values as both established investors and new entrants are looking to take advantage of the current environment of low exchange and interest rates. In H1 2017, 55% of transactional value was attributed to London hotels, reaching circa £1.1 billion. In recent months, the market has witnessed an influx of South East Asian investors with bespoke and independent brands looking for a foothold in London. Key transactions for the year thus far include the JW Marriott Grosvenor House Hotel, South Place Hotel and the Capital & Levin Hotels in London which all sold to overseas investors.

Domestic investor buyers are having to seek alternative ways to remain competitive in an increasingly international investors market in addition to which is an increased level of demand coming from private family office investors that are willing to take planning risk on less conventional opportunities including development and conversion projects across the City. Many London Owner Operators, find themselves at an interesting crossroad – whether to take an early exit from existing assets and take advantage of the strong performing and supply-constrained market or bunker down, reinvest and look to alternative value-adding projects within their existing businesses.

Since Brexit, UK hotels have become approximately 24% cheaper to foreign investors. This currency shift has allowed new international entrants to the UK market as the favourable exchange rates has boosted spending activity. The anticipation of a softer Brexit will provide further comfort, encouraging development and relieving pressure on staffing, all key factors when considering a purchase in the UK hotel market.

Savills are forecasting that the UK hotel market will transact circa £5.1 billion this year, 28% up on the 2016 total of £4 billion. Whilst a sustained and balanced economy is not guaranteed, as overseas investors become more comfortable with the UK market we anticipate continuled growth of new concepts, brands and operators looking for rapid expansion in the current favourable market conditions.

Savills Hotels department offers a wide range of services including valuation, acquisitions, disposals and operator searches. Furthermore our cross discipline services, some of which include development, planning and rating, can ensure your scheme maximises it’s potential.

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The British Isles positively brims with heritage assets, be they buried archaeological sites, monumental stone complexes, castles or cottages, medieval barns or mansions. This rich landscape, much like a palimpsest, both provides and informs the narratives that give places in Britain their meaning(s), interest as tourist attractions, and their value as national treasures.

Savills Archaeological Services has formed in response to the national legislative and local policy protection afforded to the nations heritage, and expands the comprehensive expertise offered by Savills to our clients. Whether in support of planning applications, listed building consent or through the provision of consultancy and advice to landowners, estate managers, or the buyers and sellers of properties, we ensure compliance with the latest heritage policies.

One of our key products is commonly termed a ‘Heritage Statement’. These statements can take the form of an appraisal, an assessment of significance, a desk-based assessment or a settings assessment according to the scope and requirements of the given project, the client and the statutory consultees. For this reason we work closely with our colleagues

SAVILLS ARCHAEOLOGICAL

SERVICES (SAS)

TA K I N G T H E PA S T I N T O T H E F U T U R E !

and clients in order to allow you to consider which might best fulfil your needs. We are on hand to advise you of the best way forward and will be happy to discuss each project with you on the phone, via email or in person at one of our offices. Our services are UK-wide, and we have long-established relationships with key consultees across counties.

Dr Paula Lutescu-Jones is Savills’ own Principal Archaeologist and Heritage Consultant, with specialist expertise in the assessment of archaeological potential, landscape archaeology and burial archaeology. She provides a wide range of clients across the UK with expert guidance on all archaeological matters relating to planning and development, heritage constraints and opportunities for enhancement, and develops mitigation strategies in liaison with clients and statutory consultees (LPAs, Historic England and CADW) and manages archaeological fieldwork projects and subcontractors on behalf of clients. Paula has directed archaeological fieldwork and conducted desk-based research and settings assessments across sites Southern and Western England, the Midlands and Wales since 2003, and remains an active academic researcher with numerous internationally reviewed publications.

Since its conception, Savills Archaeological Services have successfully contributed to a number of large and small-scale projects, and frequently work in close collaboration with internal colleagues across divisions including Conservation Architecture, Estates management, Residential sales, Country Houses, Building Consultancy, Planning and Development and Commercial Heritage, as part of a multidisciplinary team which continues to grow and in response to our own and clients’ needs.

Rather than being a matter for the past, the protection and enhancement of heritage assets through sustainable development has become very much a part of our present and the future. Constraints can be a daunting prospect for developers, planners and clients alike, and timely advice is paramount in avoiding costly delays and setbacks. We are here to ensure that Savills clients receive the highest standard of care, and that our colleagues have the in-house expertise they need to answer all those awkward questions, whenever they might arise.

A U T U M N / W I N T E R 2 0 1 7

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The UK cottage complex market has traditionally been closely aligned with performance of the residential market. Many purchasers in the sector choose to release equity in their homes to finance the purchase of a lifestyle business, and are therefore equity backed, however, for the more aspirational buyers, bank debt will play an important role. The current climate of debt availability means that for those purchasers with a reasonable amount of equity, and a robust and well-tested business plan, commercial debt is available. If there is an option to purchase the ‘owners’ house on a separate title there is also the opportunity to source a conventional residential mortgage on this element.

H O L I D AY C O T TA G E S

P R O P E R T I E S W H I C H A R E W E L L L O C AT E D , P R O P E R LY P R E S E N T E D A N D A P P R O P R I AT E LY

P R I C E D A R E AT T R A C T I N G G O O D I N T E R E S T

Recently, institutional and private equity backed purchasers have entered the UK market, seeking well located, larger complexes which offer good stabilised income streams and opportunities to improve profit conversion when added to a trading group. These purchasers will have access to cheap debt and in most cases will gear their borrowing to take advantage of this.

Since the vote to leave the EU the market has effectively become two speed, with complexes priced up to around £1.5m attracting strong interest, while those above face challenges in attracting substantial attention. That said, despite the headwinds of the general election, continuing economic uncertainty and the ongoing negotiations with Europe, the market fundamentals remain strong, with appropriately priced, well-located, properly presented properties, attracting good interest.

After a challenging beginning to the year, Savills in the South West has seen an uptick in the number of sales agreed on these types of properties and expect to see a strong second half of the year in terms of transactions.

The EU referendum has also had a tangible impact on the trading performance of cottage complexes, with properties across the South West reporting year-on-year increases in both occupancy and rates achieved The fall in the value of Sterling, geopolitical uncertainty and terrorism related incidents abroad, have led to more people choosing to holiday in the UK. Concurrently it also cheaper for foreign holiday makers to visit and there has been an upswing in inbound tourism, particularly from continental Europe, which is set to continue.

savills.co.uk/leisure

A S P E C T S

Sectors

GOLF

Courses

Driving ranges

Golf developments

Golf and country clubs

HOLIDAY PROPERTIES

Static & touring caravan parks

Holiday resorts and villages

Holiday cottage complexes

Lodge and chalet parks

Timeshare resorts and complexes

MOBILE HOME PARKS

SPORTS VENUES

Health and fitness clubs

Sports grounds

Motor sports venues

Shooting schools

Ski centres and resorts

Leisure centres

VISITOR ATTRACTIONS

Theme parks

Museums and heritage centres

Children’s activity centres

Wildlife parks

WATER-BASED LEISURE

Marinas and moorings

Piers

Sports and activity lakes

Fishing complexes

EQUESTRIAN

Racecourses

Studs and training establishments

Polo facilities

Riding schools

Livery yards

Equine health centres

LICENSED PREMISES

Public houses

Restaurants

Bars

HOTELS

City centre

Country house

Resort

Business

Budget

Sites and schemes

URBAN LEISURE

Bowling centres

Cinemas

Theatres

Snooker clubs

Night clubs

Casinos

Bingo clubs

TRADE-RELATED PROPERTY

Ports and airports

Waste transfer and recycling centres

Abattoirs and food processing

Crematoria, graveyards and woodland burial sites

Religious facilities

Nurseries and garden centres

Schools and colleges

Mineral extraction sites

ENERGY

Photovoltaic

Wind turbines

Anaerobic digesters

Waste to energy

Traditional generation

Services

• Valuation • Planning • Rating • Expert witness • Sales • Lettings

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