After an extremely long winter, where we have endured another lethal wave of Covid19 and high prevalence, resulting in a full lockdown for the country, the hospitality industry and our beleaguered publicans - how does this Spring re-opening and forthcoming Summer trade bode for the licensed trade?
Our last Winter 2020/2021 property update documented how the licensed property market was extremely challenging and naturally affected by the pandemic.
However, whilst the market, values, profitability and volume of licensed business sales was obviously reduced, at Guy Simmonds we are pleased to have a healthy pipeline of both freehold and leasehold businesses under offer, following a relatively good number of completions taking place over the winter 2020/2021 period.
Sale prices for leases and freeholds at Guy Simmonds are covering a broad spectrum, ranging from around £10,000 to circa £1.5 million.
We have many further completions throughout the country scheduled for this Spring and Summer 2021. Indeed we are experiencing a shortage of freehold and leasehold businesses to replace recent sales.
If you wish to sell your freehold or leasehold pub or licensed property/business, email us in confidence firstname.lastname@example.org and we will call you back to discuss your proposed exit strategy and values, in complete confidence and with no obligation.
We have prospective cash purchasers actively and urgently seeking freehold and leasehold pubs and licensed property/businesses nationally to buy now, and they are extremely optimistic of being able to achieve a good trading level this 2021 summer and thereafter.
We also offer our specialist expertise whereby we advise retiring freehold owners upon the option of retaining their freehold premises and creating a new free-of-tie lease lease, for their annual income. We advise upon achievable, sustainable rent and terms, (crucial during covid19 prevalence) and find a suitable lessee and have provided this expertise and resulting success for over 30 years. There is still high demand at Guy Simmonds for these desirable free-of-tie leases and we are selling them at a good level, to purchasers/lessees who feel it is a good time to buy a business.
We have purchasers looking to buy due to deciding upon a change of lifestyle, or as a result of being made redundant from other sectors or corporate positions. We also have professional purchasers looking to buy freeholds at sensible figures for investment or/and instructing us to find them a suitable lessee for long term rental income.
Of course values have been affected due to the pandemic, due to the reluctance of banks to lend and since the level of profitability has been severely impacted, often reducing the goodwill element of a business which a purchaser is prepared to pay.
Nevertheless, providing a vendor is savvy and realistic, in line with market conditions, sales are still taking place at Guy Simmonds.
Freeholds are still hugely popular and finding professional and private buyers, especially since the freehold 'bricks and mortar' element of a going concern business always has an intrinsic value. Also a freehold has current/future value for potential 'change of use' to residential, which is of course a very buoyant sector at present.
We now have to assume Covid19 is endemic, and we will have to learn to live and cope with it in our personal and business lives for the foreseeable future and to plan/react accordingly. Consequently, uncertainty will of course continue to prevail in these unprecedented times, with current and probably future variants of concern, potentially undermining our hugely (thus far) impressive vaccine roll out.
It is clear that should we endure further Covid19 increased prevalence/waves, then hospitality (as opposed to other sectors) is seen as a political 'sacrificial lamb', susceptible to on-going Covid19 restrictions and with the unfortunate ultimate scenario of potential closure(s) yet again. The only thing that is certain is no one can predict the future.
However, and with our 'glass of real ale half full', we can hopefully look optimistically forward to another summer and thereafter of very good trade in the hospitality industry, with our great resilient operators and publicans again achieving excellent gross profits.
This late Spring and Summer should also see our industry hugely benefit from the 'holiday staycations' and people who instead of taking holidays abroad, elect to stay in the UK to visit and spend their 'pent up' accumulated winter savings in our hugely appealing pubs and restaurants.
As mentioned above, for those publicans and freehold owners thinking of selling at this possibly optimum time or in the future, please email with your preferred contact details and best telephone number to: email@example.com. We will then contact you in confidence, to discuss values, your exit strategy and crucially offer honest and realistic advice for you, during these challenging times.
We are delighted to report that viewings of freehold and leasehold pubs by potential purchasers are now extremely high, always following the current government viewing guidelines.