If you no longer wish to own your self-catering lodge or self-catering lodge park, selling your business can provide an ideal solution which can generate significant returns and make way for a cost-efficient exit. There are numerous reasons you may decide to exit from the role of director for your self-catering lodge park, such as health vulnerabilities, retirement, Covid-19 trading pressures or to simply pursue another route in life.
The lodge hire and rental market pose several challenges as staycations grow in popularity and demand for lodge parks with greater amenities increase. The UK Holiday parks and campsites industry contributes over £9 billion to the UK economy and supports over 170,000 full-time employees. As growth potential increases, you may desire to pass on ownership to a buyer with more investment potential and a higher risk appetite.
The step you take next will depend on whether you are selling a lodge as part of a park agreement, as if this is the case, you will need to negotiate terms with the park operator. If you are selling a lodge park, you may be well placed to attract a buyer with an existing interest in the market, such as a competitor, or a new entrant.
Self-catering lodge parks operate on a seasonal basis, typically generating soaring demand between July and August, over the Summer holidays. As with the changing seasons, your holiday park will require all-year maintenance, adapted to the changing British weather. The growing challenges and opportunities associated with this sector consist of the following:
Carbon footprint: Due to the high footfall nature of holiday parks, the leisure sector is under increased scrutiny to reduce its environmental impact and carbon footprint. Holiday parks are now implementing initiatives to provide recycling facilities and energy-saving tools, such as solar panels to generate energy, automatic lighting systems and improved heating controls.
State-of-the-art facilities: As the power of social media, public relations and influencer marketing shine light and transparency on real-life holiday experiences, the demand for high-quality living and leisure spaces is on the rise. As UK’s leading holiday park groups bolster their service offering, independent lodge parks are being forced to compete by directing greater investment towards lodge renovations and modernisation projects.
Social distancing measures – As the Covid-19 pandemic threatens public health, increased focus is required to health and safety measures to protect guests from the spread of infection. Lodge parks may be required to review the capacity of communal venues to ensure that social distancing can be adhered to, reducing footfall.
If you are considering selling your self-catering lodge park business, Selling My Business can help you source an interested buyer from our extensive database of over 10,000 registered buyers.
"I approached Selling My Business to explore my options to make a cost-efficient exit from my profitable self-catering lodge park. I decided to sell my it rather than opt for a Members’ Voluntary Liquidation as I originally intended – the best decision I ever made."
Timothy – Independent Self-Catering Lodge Park, Nottingham
When preparing your self-catering lodge park business for sale, your first key decision will be to decide what route to take to sell your business. A business transfer agent can offer a wealth of experience and industry understanding to help you maximise sale value. At Selling My Business, we offer a free self-catering lodge park business valuation, provided by our in-house business valuation team. We do not charge upfront fees; however, this is a common caveat which should be avoided.
A reputable business transfer agent will guide you throughout each stage, from business preparation, business valuation, sourcing a buyer, to entering into sale negotiations and completing the sale of your self-catering lodge park. Timing the sale of your business can be the key to a successful transaction for both parties. Transferring ownership during the off-peak season can reduce the administrative burden and allow for a smooth transition without disrupting business operations or service delivery.
We will help prepare your business for sale by placing it in the best position to maximise sale value and achieve a competitive market price. Reviewing company outgoings, streamlining operations and strengthening the image of your business can help towards presenting the best version of your business to prospective buyers. We are experienced in directing the sale of independently owned and franchise lodge parks and singular lodges as part of a park network. We can offer a free business valuation and connect you with our network of buyers in the hospitality sector.
Valuing a self-catering lodge park business consists of assessing the worth of assets, outstanding liabilities and any other component which represents monetary or business value. Conducing a free self-catering lodge park business valuation with Selling My Business generates an accurate estimation of the value of your business, helping you plan for the future of your company. If your lodge park generates healthy income and offers several business growth opportunities, it is likely to attract prospective buyers actively searching for a profitable lodge park venture.
Your business valuation will provide a starting point to determining how much your self-catering lodge park is worth, however, buyers may be on the lookout for a self-catering lodge park which fits a specific set of criteria personal to them.
Company growth - Business potential is a significant contributor to the overall value of your lodge park or holiday village, as if your company has the potential to generate more income, an ambitious buyer can assist in achieving long-term growth. Self-catering holiday parks or villages allow for the provision of a wide range of fixed accommodation options, from holiday lodges, cabins, treehouses and apartments. Possible expansion opportunities may include the development of high specification lodges, from waterside lodges, animal-friendly lodges, adapted lodges and lodges integrated with private spa facilities, elevating your service offering. Providing a range of accommodation options allows for different price points to be established, speeding up company growth and attracting a wider range of holidaymakers.
Location and unique features - The location of your lodge park will play a key factor in contributing to company value, for example, a rural national park setting or a popular tourist destination neighbouring places of interest, naturally attracting holidaymakers. Self-catering lodge parks can consist of a variety of features which add value, from fishing lakes, child-friendly activities and private parking, to skilled employees, specialist machinery and guaranteed income through advance bookings.
Brand exposure – The value of brand identity and public perception through marketing, advertising and public relation efforts can influence consumer demand and boost conversions if carried out effectively. The reputation of your self-catering lodge park is likely to contribute to business value and influence prospective buyers looking for a self-catering lodge park requiring minimal start-up investment to revamp brand identity.
If you decide to sell your self-catering lodge park, you will need to conduct a business valuation to establish a guide sale price and generate a valuation report detailing a calculation breakdown. Our in-house valuation team are industry veterans with an extensive understanding of the hotel and leisure sector and decades of experience in the business transfer trade which is instrumental in determining an accurate value.
The Selling My Business team will share how to value a self-catering lodge park business and the information required to conduct this process. We typically request 3 years’ worth of recent/historic accounts to begin the process of determining the value of your self-catering lodge park business.
The coronavirus pandemic has led to challenging and unpredictable trading conditions for the travel industry, severely restricting operational capacity as a result of the Covid-19 lockdown and social distancing measures. As local lockdowns continue to hammer down on high-risk areas, self-catering lodge parks are being adversely impacted by mass cancellations and postponed bookings. If your lodge park is experiencing financial distress due to Covid-19 pressures, you may consider selling your business to a resilient buyer during this uncertain period of trading.
The pandemic has pushed many industries into dormant trading as the extremity of measures surrounding tourism fluctuates by the day, making income forecasting a tough task. Although financial uncertainty has clouded the appetite of investors, proceedable buyers remain determined and driven to acquire businesses in the hotel industry.
As international travel endures disruption due to flight exemptions to particular countries to mitigate the spread of Covid-19, staycations are likely to be popular after Covid-19 restrictions are relaxed across the country. As demand is expected to soar for staycations, including self-catering lodge parks, this may be an ideal time to attract a prospective buyer for your lodge park business.
If you want to sell your self-catering lodge park business in distress, we can help determine if this route is feasible based on company value, or if company liquidation is a more appropriate exit route. If parts of your business are more profitable than the other, you may decide to sell a fraction of your company to a prospective buyer with strong financial backing, industry connections and a wealth of experience navigating the holiday and leisure market.
The business sale process can open the door to a variety of opportunities to ailing businesses by injecting the business with cash, bolstering market share and improving financial performance. Securing a resourceful buyer can stabilise the future of your business, making it the ideal halfway house for businesses in financial distress.
Contemplating selling your business? Our free, comprehensive guide will walk you through how you can sell your company. Our FREE guide covers all of the essentials, including:
Plus much more...