Real Estate, Hospitality & Construction

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Hospitality & Leisure: Competing for growth in a recovering market

After a number of years of economic stagnation, the hospitality and leisure sector now has a strong appetite for growth.

Confidence is returning to deal makers, who have money to spend in the sector. With price expectations between buyers and sellers converging, and financing readily available for the right assets, deals are happening.

Across the Hotels, Gaming, Pubs and Restaurants sub-sectors, the improved UK economic environment will directly affect performance, which is generally tied to GDP growth, and the sector is now more positive than it has been for years.

However, there are still challenges.

In particular our sector remains sensitive to changes in the regulatory and tax environment, as seen in the recent Budget for the gaming sector. Decisions around taxation, such as the reduction in Bingo duty to 10%, and the introduction of point of consumption tax for online gaming, will substantially change the sector’s dynamics in the UK, and influence the level of investment these businesses will be willing to make.

For now, they need to carefully consider how to most efficiently invest capital, while managing costs to ensure they maximise growth opportunities that lie ahead.

Related content

EY - Growth ahead for the global hospitality industry

Growth ahead for the global hospitality industry

Investment from Asia, changing consumer preferences and how destinations manage tourism strategy are among the key issues affecting the industry. Learn more in our report.

EY - Reception desk bell

Hotels

Investors, both domestic and inbound, are now returning to the sector as vendor price expectations become more realistic.

EY - People eating in a restaurant

Pubs and Restaurants

Although in better shape than in the previous few years, the industry still faces challenges, including continued tight consumer spending, cost increases and strong competition, especially on the high street.

Contact us

Real Estate, Hospitality & Construction

EY -  David Wilson David Wilson
REHC Audit Leader
+44 (0)20 7951 0004

 

EY - Russell Gardner Russell Gardner
REHC Tax Leader
+44 (0)20 7951 5947

 

EY - Fraser Greenshields Fraser Greenshields
REHC TAS Leader
+44 (0)20 7951 7151

 

EY - Mark Wesley Mark Wesley
REHC Advisory Leader
+44 (0)20 7951 3279

 


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