AN anticipated shortage of quality pubs and hotels coming on to the market in 2018 will lead to positive price movements in the year ahead, property firm Christie & Co has said.
Presenting its Business Outlook 2018 report in Glasgow last week, George Ranachan of Christie & Co’s Glasgow office said that pubs and hotels have continued to show signs of positive, stable growth despite the “headwinds” within the sectors.
An anticipated increase in demand from private equity and trade buyers is expected to have a positive effect on pub values, said Christie & Co, which reported that average pub prices across the UK rose 3.8% in 2017.
Average hotel prices in the UK are said to have increased 5.8% last year; however, the property firm said restaurants are “currently a victim of their own success”, with the average price of UK restaurant businesses down 3.4% last year, from 14.1% growth in 2016.
Ranachan said the firm anticipates ‘brand fatigue’ to cause consumers to move away from restaurant chains, which he said “will create some notable casualties in 2018”.