Further rises for number of distressed pub, hotel sales

The number of pubs, restaurants and hotels that have been sold over the last six months has jumped by 189 per cent, according to property agents Christie & Co.

The number of distressed hotel businesses sold over that period has increased by 88 per cent compared to the same period last year. Also recording a dramatic increase was the distressed restaurant sale sector, which notched up a 67 per cent rise.

Steve Rodell, head of bank support & business recovery at Christie + Co, said, "Whilst a voluntary exit is usually preferable our evidence shows that businesses can still attract significant numbers of buyers even when tainted by financial distress, which is often caused by over leveraging."

Whilst Rodell acknowledged that the rough economic conditions have led to many businesses already faltering, with many more to go under over the next six to twelve months, researc h from Christie & Co revealed that experienced operators continued to be enticed by distressed assets. Also keen on distressed assets were those looking to start their first business. He said he noted a marked rise in buyers returning to the market during 2010.

Rodell also made it clear that there continued to be a number of success stories across the hotel, restaurant and pub sale sector, in which owners have 'sought advice or adapted their offers in line with the changing trading environment.'