Pubs remain popular but market less frenetic than last year, says Mike Easton, Head of Hotels and Hospitality. ‘The South West pub market had bucked the national trend last year, broadly due to the strong residential market providing capital for new entrants looking for lifestyle changes across the region. At the time there was a noticeable lack of stock as existing operators looked to make the most of a busy season and recoup losses of the year before.’ Comments Mike.
‘We are into the second half of 2022, and have already seen a rebalancing of the high demand and low stock, with more owners committing to the market and looking for an exit in the next 6-12 months. This comes at a time where there is more caution ahead with the rising cost of living expected to have an impact on trade generally. We predict that transactions will slow, but traditional pub stock, particularly villages inns will remain popular and that sensibly priced sites will sell. We are also seeing the return of investment pub sites as investors look to move product on now the market is showing some stability for the longer term. We anticipate pricing to hold in the short to medium term.
‘Trading wise we see the longer term operators holding their own this year as customers are expected to be more cautious in their spending and trusting venues they know well. Goodwill will be the key ingredient to maintaining trade and new entrants will need to clearly identify their offer to give customers confidence in their product’ He concluded.
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