2021 – Exceptionally strong demand for caravan parks at premium prices
With the start of a new year, it is perhaps worthwhile considering the state of the current market for holiday and residential caravan parks of all types.
Prior to the Covid Pandemic, the market for parks was undoubtedly buoyant with prices achieved at the highest level for over 40 years. Although generally only marginally in excess of those achieved immediately before the financial crisis in 2008 on an inflation adjusted measure.
Click here to view the full report
The pandemic itself created considerable uncertainty, with many parks having to close causing wide ranging instability for a short period. However, the Government stepped up across all sectors with favourable treatment of hospitality businesses helping to weather the storm whilst park owners got on with implementing the necessary measures to ensure a return to Covid safe parks as soon as possible.
Following the lifting of restrictions, a combination of pent-up demand caused by the enforced lockdown and well managed Covid precautions saw exceptionally strong demand from visitors to parks across the country. Moreover, the sector further improved its prominence amongst the wider investment community leading to many well-funded new entrants to the market competing against existing operators in a sector that has previously been considered something of a closed shop.
As a consequence, parks are being re-appraised with much stronger multiples of earnings and pitch values being achieved than has ever been the case. This, coupled with continuing strong demand has resulted in premium prices being achieved.
We have experienced parks across the country being in strong demand and have concluded sales across all types of park, including on and off market transactions. In recent years more vendors have emphasised their wish for a discreet, confidential sale and Sanderson Weatherall are well placed to oblige. Utilising our expertise and knowledge of the marketplace alongside our database of active applicants, operators and investors has ensured we have been able to generate the competitive interest that is key to maximising the realisation achieved and success of any sale.
Over the next few pages, we have listed a number of key park sales and transactions from the last year as well as a snapshot of some recently listed parks for sale. If you are contemplating whether to capitalise on the buoyant market conditions that presently exist and would like a discreet appraisal of your business in complete confidence and without obligation, please do get in touch.