EDITOR'S COMMENT
• It hasn't been the busiest period for investment in the UK domestic self-catering holiday sector, amid ongoing market uncertainty, so the breakdown in the long sale process for holiday village chain Center Parcs may have already been anticipated.
Canadian private equity firm Brookfield put Center Parcs up for sale in May for a figure between £4 billion and £5 billion, more than double the £2.4 billion it paid Blackstone for the chain eight years ago. However, despite reports of interest from various quarters, the company was unable to attract any firm bidders at its ambitious asking price.
The indefinite pause on the process, which would have included the sale of Center Parcs' six holiday villages across the UK & Ireland, should not reflect badly on the business nor the strength of the self-catering sector itself, given that Center Parcs continues to bring in more than two million guests on average a year and occupancy rates remain high at around 97 per cent. I do wonder what upside there is for a new buyer at this level.
Indeed, there have been a few major transactions in the European segment this year, notably European Camping Group buying Vacanceselect Group for €1 billion in January.
With the sustained demand for domestic staycations likely to last into 2024, it highlights how potential buyers are being more hesitant to commit to larger, perhaps riskier transactions when they might be able to achieve a better deal as economic conditions improve. There may not have been as many acquisitions as expected in 2023 but further consolidation is inevitable, and those buyers who hold off now may be rewarded for their patience in the long run - who knows?
• We're delighted to be launching our Shortyz Awards for a fifth edition in 2024 and we have an exciting new category too - 'Team of the Year'. Our entries period will go live later this week at our event website - stay tuned for more news on our social channels and click here for the overview of the categories and their criteria.
• Make sure to register for one of my favourite STRz webinars [12 December] as I get the crystal ball out to reveal my top predictions for the short-term rental space in 2024. Contributors are already confirmed from Unplugged, I-PRAC and Abode Worldwide - sign up for free now at this link.
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