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The holiday park market is thriving in the
current economic climate with a number
of significant transactions having recently
taken place. In September 2015 two major
park operators, Park Resorts and Parkdean,
merged to create a caravan park operator
now known as Parkdean Resorts. This 73
site mixed freehold and leasehold portfolio
has recently been sold to a private equity
group, Onex, at a reported circa £1.35
billion, a good deal higher than market
expectations and showing a particularly low
yield on achieved profits.
In February 2017 the Park Holidays portfolio
of 24 holiday parks (mixed leasehold and
freehold) was sold to private equity group
ICG at a reported £362m which can be
analysed to a range of multipliers of 9 to
11 on freeholds and 9 on long leaseholds.
Late 2016 also saw the sale of Sandy Balls
Holiday Park on the south coast to Away
Resorts at a reported £38m showing a
multiplier on achieved profits believed to be
in excess of 12 (8.5% yield).
The holiday park market is currently in
a place where demand is outstripping
supply, with only a limited number of parks
coming to the market for sale. The majority
of the main operators within the industry are
in aggressive acquisition mode, with a notable
appetite for parks that offer development or re-
development opportunities.
The increased demand for short breaks
in luxury accommodation across the
country, along with the increasing quality
and diverse range of units being produced
by manufactures, is fuelling this demand.
Whilst the true consequences of the UK’s
decision to leave the EU is unknown, the UK
holiday park market is yet to experience any
form of negative consequence as a result.
H O L I D AY PA R K
MA R K E T
T H R I V I N G I N T H E C U R R E N T E C O N O M I C C L I M AT E