Pubs & Restaurants Market Insight: South East and London

Demand for quality pub and restaurant businesses across England’s South East has always been strong, driven by buyers looking to capitalise on the region’s many popular tourist destinations. Despite the economic headwinds facing the hospitality sector, this remained true in 2022, particularly for assets along the coast, with 50% of the region’s hospitality sales occurring in coastal locations.

Buyers are seeking out businesses that have multiple revenue streams, so pubs with letting rooms are proving very popular, likely due to the booming staycation market.

Within the London market, the pandemic and subsequent work-from-home culture has shifted buyer appetite and we have experienced more demand for opportunities in suburban areas rather than central, due to lower property costs and customers wanting to stay closer to home. Free-of-tie leasehold opportunities are also increasingly in demand, with lease assignments and new lettings making up 30% of total sales last year.

Over 2022, a third of buyers were existing multi-site operators looking to expand and less than 5% were seeking an asset for alternative use, demonstrating the strength of the sector. Sellers have been a mix of those looking to retire, having delayed plans due to the pandemic, and regional pub companies such as Shepherd Neame and Gray & Son.

We advised on over 2,100 pubs and restaurants across the UK last year. Here’s a roundup of some of our recent sales and current opportunities on the market across the South East and London.

 The George Hotel

The letting of the George Hotel in Swaffham, Norfolk for the Wellington Pub Co.

Blakeney Manor Hotel

The sale of Blakeney Manor Hotel on the coast of Norfolk, to expanding pub and inn operator, Red Cat Pub Company.

The Grapes

The freehold disposal of The Grapes in Gravesend on behalf of Shepherd Neame, which achieved bids well in excess of asking price.

Plotting Parlour

Free-of-tie letting of the Plotting Parlour, an award-winning cocktail bar in central Brighton.

The Store

Lease assignment of The Store, a bar and restaurant in Croydon, after multiple bids to the popular Livelyhood Bar group.

For more market insights, read our Business Outlook 2023 Report: Finding Clarity

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