Soaring property values for health clubs caused values across the FTSE’s leisure, entertainment and hotel sector to rise by 41% over the last year, despite falling hotel values.
According to a report by law firm Halliwell Landau, the growth was almost entirely accounted for by the leisure and entertainment sector, which rose by over 121%. Values for pubs and breweries went up by just 9%, while hotel values slumped by 8%.
The disparity was also shown in rents, with the leisure and entertainment sector experiencing a 30% increase, compared to an overall increase of 15%.
Simon Hardwick, head of Halliwell Landau’s London property team, says: “The 41% rise across the sector is a real surprise but on closer analysis the main growth has come from the leisure and entertainment sector, and in particular health clubs. However, this growth area is slowing and recent negative trading statements would indicate that this is a trend which can not possibly continue – the sector is experiencing a downturn.”
EGi News 04/02/03
