Despite significant economic headwinds and operational challenges, there is still solid demand in the hospitality market for new site acquisitions.
That’s the view of Christie & Co, launching its 2025 Pubs and Restaurants markets review.
The report discusses a notable increase in activity from pubcos in the first six months of the year, both looking to acquire new sites that fit their criteria, and streamline their portfolios. Independent buyers are still the most active in the market, representing the buyer in 65% of deals agreed by Christie & Co this year.
Approximately 86% of pubs sold by Christie & Co this year have been for continued use, underlining the resilience and long-term viability of the sector along, with good levels of buyer confidence.
The market remains polarised, with strong demand for assets under £600,000 and at the prime end of the market. Demand has moved away from food-led establishments to wet-led, which tend to offer better profit margins, due to the high cost of food production.
The market for pubs with accommodation is proving even more robust than expected and experiencing significant growth.
The report — which can be downloaded here — also discusses consumers’ growing preferences for low- and no-alcohol options, as well as venues which offer unique experiences and vibrant atmospheres, forcing hospitality operators to enhance their offerings with a focus on ambiance, events, and service quality.
“Our latest report highlights the sector’s enduring appeal and adaptability, in the face of significant ongoing pressures,” said Stephen Owens, managing director, pubs and restaurants at Christie & Co.
“Pubs and restaurants are continuing to attract strong interest, particularly those that are well positioned, competitively priced, and capable of diversifying income streams.
“We’ve seen a clear shift toward wet-led models and increasing demand for venues with accommodation, as operators look to broaden their offering and boost profitability. Independent buyers remain a driving force in the market, reinforcing confidence in the long-term opportunities in the hospitality sector as we move through 2025.”
