Our entertainment and leisure assets are focused on theme parks and hotels.
Shifts towards experiences and staycations are providing structural tailwinds for our theme park and hotel assets.
The acquisition of LXi REIT materially increased out exposure to this sector
Our theme parks are high quality, mission critical and irreplicable assets let on long leases, whilst our hotels are focused on the budget market which is experiencing favourable growth dynamics.
£ 1.3 bn
Portfolio value£ 81 m
Contracted rent112
Assets36 years
WAULTSub sectors of entertainment
Theme Parks
Consists of Thorpe Park, Alton Towers, Warwick Castle and Heide Park. These assets are let with a WAULT of over 50 years to Merlin Entertainments with a mixture of annual CPI linked rent reviews and annual fixed rent reviews of 3.3% per annum.
Hotels
Consists of over 70 budget hotels, mostly let to Travelodge. These assets and are let with a WAULT of 25 years, mainly on five yearly CPI/ RPI linked reviews. They are located nationwide but focused on roadside locations.
Venues & Other
Comprises pubs, cinemas, garden centres and events venues including the AO Manchester Arena mostly let to SMG Europe for a further 20 years
Market drivers
Economic and generational shifts are driving consumer behaviour towards making memories over buying material things.
Theme parks are benefitting from these trends and are proving to be non-cyclical performers. Theme parks also have significant barriers to entry in the UK with large investment required to maintain visitor appeal which adds to their defensive characteristics.
The trend towards staycations as a more affordable holiday option is also positive for theme parks as well as hotel operators, the latter experiencing a strong recovery following the disruption from Covid-19.
£ 55 bn
Spend on UK tourism day visits in 2024 (+5% yoy)