The credit crunch slowed transactional activity and reduced average property values across the pub, restaurant and hotel sectors by an average of almost 15% during 2008, research has revealed.
The Business Outlook 2009 report, by property agent Christie & Co, showed that values in the hotel sector reduced by 18.36% during 2008, whilst the pub and restaurant sectors witnessed declines of 11.63% and 14.92% respectively.
But Christie & Co stressed that, while transactional activity has slowed across the hospitality sector, it has not come to a standstill.
David Rugg, chairman of Christie & Co, said: “We are still seeing a consistent volume of buyers registering on our website and viewing businesses. In fact we arranged more viewings by more viewers in 2008 as against 2007.
“The number of businesses for sale is stable and constant. It is the lack of cash, and with it a lack of certainty, that has slowed the market confidence of both buyer and seller.”
As the market slowed last year, operators selling properties became more realistic and this provides real value opportunities for cash-rich buyers in 2009, Rugg added.
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By Daniel Thomas
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