Market activity for pubs and restaurants improves in H1
There has been increased M&A activity, signalling that investor confidence has improved
Pub and restaurant market activity has seen an improvement in the first half of 2024 compared with the “subdued” levels seen last year, according to Christie and Co’s Pubs and Restaurants Mid-Year Market Insight report.
It comes as the property adviser’s transactional metrics trended upwards since January this year, albeit off soft year-on-year comparables.
While demand has been shown to be polarised towards bottom-end and premium assets, this trend shifted over the past six months. Christie and Co believes this suggests that the mid-market is returning.
Additionally, there has been increased M&A activity, signalling that investor confidence has improved.
Looking ahead, Christie and Co “remains optimistic” that market activity is moving in the right direction and suggests that correctly pricing assets is “the key to increased deal activity” as vendor expectations remain high – particularly as rates are expected to come down in the coming months.
Stephen Owens, managing director of pubs and restaurants at Christie and Co, said: “The first half of 2024 has seen the forward momentum continue from the end of last year. What the sector now requires in order to ensure that the recovery continues, is stability.
“The new government needs to keep its pledge to help the hospitality sector particularly around business rate reform, interest rates starting to ease, improved consumer confidence and hopefully for the sun to come out and play its part.”