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Record profits and increase in mergers and acquisitions across the holiday park industry

Record profits and increase in mergers and acquisitions across the holiday park industry

12th July 2017 / 0

The holiday park market is growing with parks across the UK announcing record profits and numerous mergers and acquisitions also taking place.

Information sourced from the Sanderson Weatherall 2017 Market Report shows that the holiday park industry has fared well since the EU referendum, which we all know resulted in the decision for the UK to leave the European Union, and they expect this to continue ‘providing the economy in general stays on an even keel.’

Research by Ortus Secured Finance also shows the UK’s 100 largest caravan, camping and holiday parks saw turnover climb 9% to £2.67 billion in 2016, up from £2.46 billion five years ago.

John Salisbury, Ortus managing director, said: “Caravan, camping and holiday parks are going from strength to strength, combining value for money with high standard facilities to maximise the guest experience. The recession and the ensuing trend for ‘staycations’ gave holiday parks, camping and caravan sites access to an even broader customer base, and they have been building on this ever since.”

The holiday market has also seen its fair share of private equity deals and mergers with many investors choosing to invest in holiday parks. Earlier this year, Darwin Escapes added to their portfolio of luxury holiday parks with the purchase of The KP Club, situated near Pocklington.

Lindsey Bamford, managing director at Darwin Escapes, talking to Insider said:

“The KP Club is the perfect addition to our Darwin Escapes portfolio of holiday parks. Each Darwin Escapes park has its own unique character, but all offer the highest standards of accommodation, facilities and service.

Darwin has invested heavily across the portfolio to create some of the best holiday destinations in the UK and we look forward to carrying on the legacy of The KP Club to ensure it continues to be a leading resort.”

Other significant deals include the sale of Parkdean Resorts, the UK’s largest caravan operator sold to Canadian private equity firm Onex Corporation in December for £1.35 billion. Park Leisure was snapped up for £103 million by a consortium led by Midlothian Capital Partners, while Intermediate Capital Group bought Park Holidays for £362 million last year.

The holiday park market is strengthening due to numerous factors, one of which includes digital transformation. Those parks that invest in market leading software such as EliteParks and maintain the quality of their parks will be able be set to see profits continuing to rise.

Having the right software in your holiday park business can increase the value of your business.

How? As well as making the management of your holiday park more efficient, it makes your park more attractive to potential investors and buyers.

Why? Many buyers and investors believe competent IT systems add value to a company by improving processes and profitability, making it easier for them to understand your business and in turn speed up the sale of a holiday park.

If you have one holiday park or a portfolio of parks, Elite Dynamics can make a difference to your business with our expert knowledge and our EliteParks software. Why not arrange a demo and see for yourself how EliteParks can transform every area of park management?

Arrange a demo,  email info@elitedynamics.co.uk or call us 0161 641 8926.

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