With the demand for unique weddings on the rise, investing in the right venue can offer lucrative returns. Graham + Sibbald’s hotel team explain why saying “I do” to this type of property could be your next best move.
The UK wedding market is a dynamic sector encompassing a wide range of products and services. However, dedicated wedding and events venues as an asset type are often overlooked by investors, with a common pre-conception that they are difficult to operate and food and beverage led operations.
However, anyone looking for a business that is readily adaptable, generally cash positive and offers predictable income and earnings should be actively considering wedding-led businesses.
Wedding venues, whether purpose built, historic country houses or hotels, present a unique opportunity for acquisitive businesses. The market is predominantly made up of smaller operators that may manage only one or a handful of venues. However, these operators generally have the benefit of ready cash flow, forward visibility on future bookings and higher profit levels.
Whilst a high proportion of revenue is generally food and beverage led, the staffing and catering for a pre-determined number, menu and event generally means tighter cost control and better return.
Well run wedding venues should offer a buyer full visibility on advanced bookings, generally being contractually locked in, which are typically booked 12 to 18 months in advance. Bookings usually require significant payment upfront and once established, such businesses achieve consistent levels of demand. More than 75% of weddings now take place at a licensed venue, rather than in church, a figure which has grown steadily since 2018.
According to the most recently published data from the Office for National Statistics (ONS), there were 246,897 marriages in England and Wales in 2022, a return to pre-coronavirus (COVID-19) pandemic levels, and 12.3% more marriages than took place in 2019. The below table shows a breakdown of the partnership types that went through a civil partnership or marriage or in 2022.
Despite the cost of living crisis, according to industry data (Bridebook) the average wedding day spend in 2023 increased by 7% to £20,775. The UK wedding industry is estimated to be worth in excess of £14.7 billion and there are more than 3,200 weddings held in venues every week, the majority of which take place over the weekend.
With an average of c.80 guests attending a daytime wedding ceremony, venues with bedroom accommodation are almost guaranteed to fill available bedrooms, with many venues requiring that parties take all rooms during peak season or over a weekend. Weddings by their very nature encourage couples hosting their “big day” to spend, increasingly good operators are able to “upsell” and capture significant additional revenue.
Generally, transactions within the sector are conducted on a confidential “off-market” basis, to minimise the impact on staff, suppliers and most importantly wedding couples, ensuring that they remain with the wedding venue throughout the process. This approach requires the right quality of advice from experienced industry professionals, both in terms of pricing and market knowledge.
The role of an agent is to assist a venue owner in finding the right buyer, enabling them to exit their business at the right price level at the right time. The market knowledge, experience and network of the agent is therefore vital in a confidential and successful sale process.
G+S are ideally placed to advise on the sale process and to assist clients in preparing their business for sale. We also have established relationships with lenders and financiers that recognise the unique strengths of the sector and the investment opportunity.
Case Study – Wharfedale Group
Graham + Sibbald has a long-standing relationship with Claire Thomas, owner of the highly acclaimed Wharfedale Group in Yorkshire. The team originally provided confidential business planning and feasibility advice, together with assistance with securing funding for the development of their first venue Wharfedale Grange, near Harrogate.
Following the phenomenal success of Wharfedale Grange, we worked closely with Claire to identify and secure the groups second venue, the fantastic Solberge Hall, which is currently nearing the completion of a comprehensive programme of restoration and refurbishment. Claire commented:
“Since we bought Solberge Hall last year, we have been busy behind the scenes renovating, refurbishing, and putting the romance back into this wonderful Georgian Building. We wouldn’t have secured this opportunity without the invaluable help and guidance that Hugh Anderson at Graham + Sibbald provided.”
Castlefield Estates
As a successful property developer and owner, Castlefield Estates portfolio included a number of high performing bars and restaurants. However, with support and advice from the G+S team the group acquired their first wedding venue. The group now includes three successful wedding venues, with a fourth in the pipeline.
Sarah Ramsbottom, Director, commented “this wasn’t a sector we had really considered before working with the G+S team. However, following our initial acquisition of Woodlands, it was clear the business model offered considerable advantages over more mainstream leisure assets. We now have three fantastic venues and there is soon to be a fourth. I would highly recommend speaking to the G+S team for advice”.
The Graham + Sibbald Hotel team has an excellent track record in this segment of the market and is currently handling several confidential venue disposals on behalf of clients across the UK including Cumbria, Cheshire, Perthshire, Northamptonshire, Worcestershire, East Sussex, Wiltshire, Central Scotland and the Cotswolds. We are also acting for clients and operators seeking to acquire venues. We would be happy to discuss your transactional needs on a confidential basis.
About Graham + Sibbald
Graham + Sibbald – Graham + Sibbald (G+S) is one of the UK’s leading property consultancy services, with an established network of 21 offices, offering 20 individual Service Lines, supported by over 250 staff and 29 Partners. With an established nationwide team of hotel and leisure sector specialists, G+S have considerable experience in selling, acquiring, valuing and advising on all manner of hotel assets across the United Kingdom
Contact Hugh Anderson – Partner Hotel + Leisure – Hugh.Anderson@g-s.co.uk – 07970 690344
