The UK spent most of the first quarter of 2021 in another national lockdown, piling more pressure on the hospitality industry. As the Office for National Statistics noted, the sector “has been one of the sectors most affected by lockdowns and government restrictions throughout the coronavirus (COVID-19) pandemic.”
Despite all this, there was still plenty of activity in the investment space with a number of big deals being done over the last 12 months. Below are our five key moments from 2021.
Henderson Park buys portfolio of 12 Hilton hotels
What: European real estate investment platform Henderson Park acquired 12 predominantly freehold Hilton-branded hotels across the UK and Ireland.
When: October
Why: Henderson Park has made a big bet on the UK hotel industry with this purchased. Founding partner Nick Weber said at the time that the assets were bought at an “attractive price” but not a “distressed price.”
US REIT Sun Communities agrees to buy Park Holidays for £950 million
What: Park Holidays has become the latest holiday park operator to be snapped up
When: November
Why: It seems investors can’t get enough of holiday parks. Bourne Leisure, Roompot, Away Resorts and European Camping Group have all recently been bought, highlighting the appetite for the sector. It’s not all just Covid-related either as it’s an area that has been growing over the past few years with buyers also attracted by the possibility of mass consolidation.
UK government extends the ban on commercial evictions until March 2022
What: The government decided to extend the ban on commercial evictions until March 2022. The resulting bill will ringfence “rent debts built up as a result of mandated business closures during the pandemic whilst establishing a new binding arbitration process aimed at finding a proportionate solution which protects jobs, prevents further damage to the economy and enables a return to normal commercial relations.”
When: June and November
Why: At various points it looked like the government was simply kicking the can down the road when it came to sorting out the small number of unresolved disputes between tenants and landlords. The decision brought some clarity but as usual the industry will have to wait til the mechanism is properly tested.
Marathon swoops on UK hotel portfolio
What: Marathon Asset Management bought a collection of 17 IHG-branded UK hotels from Cerberus Capital management for an undisclosed amount.
When: May
Why: Another big deal for UK hotel properties, showing the appetite that persisted even during the pandemic.
Hotels in England reopen from lockdown
What: After being closed since January, many hotels reopened again
When: May
Why: As we head into what looks like being another terrible time for the hospitality industry thanks to the emergence of the omicron variant, it’s worth remembering just how touch UK hotels have had it over the past couple of years.