With the demand for unique weddings on the rise, investing in the right venue can offer lucrative returns but, as an asset type, dedicated venues are often overlooked by investors. Graham and Sibbald’s hotel team explain why saying “I do” to this type of property could be your next best move…
Anyone looking for an operation that is adaptable, cash positive and offers predictable income should be actively considering a wedding-led business.
Whether they are purpose-built historic country houses or hotels, wedding venues 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.
While 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, typically contractually locked in between 12 and 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 – a figure which has grown steadily since 2018.
Despite the cost of living crisis, the average wedding day spend in 2023 increased by 7% to £20,775, according to industry data (Bridebook).
The UK wedding industry is estimated to be worth in excess of £14.7bn 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 around 80 guests attending a daytime wedding ceremony, venues with bedroom accommodation are almost guaranteed to fill available bedrooms, with many venues requiring parties to take all rooms during peak season or over a weekend. By their very nature, weddings encourage couples to spend, and good operators are increasingly able to upsell and capture significant additional revenue.
Generally, transactions within the sector are conducted on a confidential off-market basis, in order to minimise the impact on staff, suppliers and, most importantly, wedding couples themselves to ensure 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.
As agents, our role 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.
Graham and Sibbald have established relationships with lenders and financiers who recognise the unique strengths of the sector and the investment opportunity of these venues.
Following the phenomenal success of Wharfedale Grange, near Harrogate, we worked closely with Claire Thomas to identify Wharfedale Group’s second venue, Solberge Hall, which is currently nearing the completion of a comprehensive programme of restoration and refurbishment.
‘Since we bought Solberge last year, we have been busy renovating, refurbishing and putting the romance back into this wonderful Georgian Building,’ she said. ‘We wouldn’t have secured this opportunity without the help and guidance from Graham and Sibbald.’
Castlefield Estates
Meanwhile, Castlefield Estates’ portfolio includes a number of high-performing bars and restaurants, and with support from the G&S team, the group operates three wedding venues, with a fourth in the pipeline.
Director, Sarah Ramsbottom, said: ‘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. I would highly recommend speaking to the them for advice’.
For more information on hospitality and leisure businesses marketed by trade specialists, Graham and Sibbald, visit www.g-s.co.uk.
Graham and Sibbald Explore the World of Wedding Venue Businesses
With the demand for unique weddings on the rise, investing in the right venue can offer lucrative returns but, as an asset type, dedicated venues are often overlooked by investors. Graham and Sibbald’s hotel team explain why saying “I do” to this type of property could be your next best move…
Anyone looking for an operation that is adaptable, cash positive and offers predictable income should be actively considering a wedding-led business.
Whether they are purpose-built historic country houses or hotels, wedding venues 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.
While 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, typically contractually locked in between 12 and 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 – a figure which has grown steadily since 2018.
Despite the cost of living crisis, the average wedding day spend in 2023 increased by 7% to £20,775, according to industry data (Bridebook).
The UK wedding industry is estimated to be worth in excess of £14.7bn 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 around 80 guests attending a daytime wedding ceremony, venues with bedroom accommodation are almost guaranteed to fill available bedrooms, with many venues requiring parties to take all rooms during peak season or over a weekend. By their very nature, weddings encourage couples to spend, and good operators are increasingly able to upsell and capture significant additional revenue.
Generally, transactions within the sector are conducted on a confidential off-market basis, in order to minimise the impact on staff, suppliers and, most importantly, wedding couples themselves to ensure 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.
As agents, our role 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.
Graham and Sibbald have established relationships with lenders and financiers who recognise the unique strengths of the sector and the investment opportunity of these venues.
Following the phenomenal success of Wharfedale Grange, near Harrogate, we worked closely with Claire Thomas to identify Wharfedale Group’s second venue, Solberge Hall, which is currently nearing the completion of a comprehensive programme of restoration and refurbishment.
‘Since we bought Solberge last year, we have been busy renovating, refurbishing and putting the romance back into this wonderful Georgian Building,’ she said. ‘We wouldn’t have secured this opportunity without the help and guidance from Graham and Sibbald.’
Castlefield Estates
Meanwhile, Castlefield Estates’ portfolio includes a number of high-performing bars and restaurants, and with support from the G&S team, the group operates three wedding venues, with a fourth in the pipeline.
Director, Sarah Ramsbottom, said: ‘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. I would highly recommend speaking to the them for advice’.
For more information on hospitality and leisure businesses marketed by trade specialists, Graham and Sibbald, visit www.g-s.co.uk.