Leisure market remains buoyant in H1, says Christie and Co
The first half of 2022 saw appetite for visitor attractions, holiday parks, holiday lettings, and experiential-led offerings, dominate the wider market
“More stable” trading conditions have been seen across the leisure market for the first time in two years in H1 2022, with clear signs of recovery for the sector as it remains buoyant, according to Christie and Co’s ‘Leisure: 2022 Mid-Year Review’.
The review found that there has been a shift in public sentiment towards leisure activities with consumers valuing recreational and leisure experiences more than ever, with experiential, outdoor, visitor attractions, and staycation-led businesses recovering.
Christie and Co said it believes that this sentiment “helped to keep the leisure transactional market buoyant” in the first half of 2022 and drove the appetite for visitor attractions, holiday parks, holiday letting accommodation and experiential-led offerings, with sales of this sort dominating the wider market.
In addition, the review notes that activity amongst sections of the private equity real estate community has “softened” as many have paused to take stock of the economic environment over the summer.
Yet these buyers are said to remain on the lookout for large-scale opportunities with value-add potential, while there continues to be a demand supply imbalance in the operational real estate segment with limited availability of high-calibre opportunities.
Looking ahead for the rest of 2022, the review suggests that consumers are expected to reduce their spending in the coming months in response to the cost of living crisis. However, Christie and Co thinks this will entail people being more selective and price conscious, rather than forgoing leisure and recreational activities all together.
Jon Patrick, director and head of leisure and development, said: “Many segments of the leisure sector have had a buoyant start to 2022, and with many choosing to holiday in the UK again this year, spending on staycation and associated leisure activities should be good this summer.
“The impact of escalating energy prices, supply chain challenges and inflation will however impact profitability for the majority of operators and particularly those with large spaces to heat, cool and light.”
He added: “Likewise, consumers will want to ensure leisure spend represents good value for money, reflecting the flight to value and flight to quality reaction that we anticipate as changing economic conditions unfold.”
