The purchase includes the takeover of 11 holiday parks owned by Park Leisure across destinations in England, Scotland and North Wales.
The deal takes Park Holiday UK’s domestic portfolio up to 54 parks, following the operator’s previous acquisition of Bridge Leisure and its nine parks last April.
It comes shortly after both businesses were acquired by US-based real estate investment trust [REIT] Sun Communities earlier this year. Park Holidays was snapped up in a £950 million deal in April, following an earlier confirmed agreement in November, while the sale of Park Leisure followed almost immediately for an enterprise value of £182 million.
Parks included within the transaction include: Chantry, Littondale and Yorkshire Dales, Yorkshire; Oyster Bay, Par Sands and Pentire, Cornwall; Brynteg and Plas Coch, Wales; Ribble Valley, Lancashire; Amble Links, Northumberland; and Malvern View in Herefordshire.
Park Holidays UK director Tony Clish told Business Live: “Both companies have invested substantially in their parks over recent years and created a range of high-quality holiday products which people clearly enjoy. Park Leisure’s 11 parks have all gained top five-star tourist board awards and represent the high-quality standards we have been working towards in recent years.
“Whether customers are looking to rent or buy a holiday home, we can now offer a wide geographical spread of parks able to deliver a first-class experience at an affordable cost. We will continue to invest in all of our parks to ensure that that their facilities and standards of service are maintained to the highest possible levels,” he added.
Consolidation continues to accelerate in the industry, with a number of high-profile acquisitions being announced. Demand for domestic staycations is remaining high due to decreased consumer spending power and increased travel costs post-Brexit with the cost of living also rising.
Sykes Holiday Cottages has been one of the most active players in the market, with the agency acquiring a controlling stake in cabin owner and operator, Forest Holidays, to create a diversified holiday specialist group, before diversifying further with the purchase of static caravan rental website UKcaravans4hire.
Meanwhile, Parkdean Resorts, which runs 66 holiday parks across the UK, is pausing its prospective £1.6 billion sale amid concerns for the UK economy, despite the likes of Bourne Leisure, private equity firms Apollo Global Management, PAI Partners, TPG, and alternative asset manager Blackstone all having been linked to the auction.
Clish continued: “The domestic holiday market continues to gain traction in the post-Brexit and post-pandemic market, and we are continuing to see an ever-increasing demand for UK holidays. Quality is the main driver of bookings and holiday home sales, and this union will consolidate some of the finest holiday parks in the UK into one single group.”