Center Parcs, a well-known chain of holiday villages in the UK and Ireland, is currently available for purchase as its owner, Canadian private equity firm Brookfield, seeks potential buyers. Brookfield, which acquired Center Parcs in 2015 for approximately £2.4bn, aims to raise an estimated £4-5bn from the sale, capitalizing on its investment.
Known for its six holiday villages, Center Parcs attracts over two million visitors annually, with families particularly drawn to its extensive on-site activities. The main highlight is the indoor waterpark, complemented by cozy wooden cabins nestled in cycle-friendly forests. The first Center Parcs location opened in 1987 at Sherwood Forest in Nottinghamshire. Subsequently, additional holiday villages were established at Elveden Forest, Longleat Forest, Whinfell Forest, Woburn Forest, and the first Irish site, Center Parcs Longford Forest near Ballymahon in County Longford.
To facilitate the sale process, Brookfield has enlisted the help of investment bankers to explore potential buyers, including other private equity firms. Despite the challenges posed by the pandemic, Center Parcs holidays have experienced strong demand, with affluent holidaymakers opting for staycations instead of international travel. Danni Hewson, head of financial analysis at AJ Bell, acknowledges the current market dynamics, highlighting that although some families may opt for a single holiday instead of additional staycations, there remains a satisfactory level of business activity. However, future growth for Center Parcs may face uncertainty due to rising mortgage costs and the overall economic climate.
In a recent turn of events, Center Parcs decided to abandon its plans for developing a new holiday village in West Sussex. Initially, the company had secured an option agreement to acquire Oldhouse Warren, a privately-owned woodland near Crawley. However, after conducting a comprehensive environmental survey, Center Parcs concluded that the site was unsuitable for development. Concerns raised by environmentalists regarding potential damage to established woodland and rare bird species habitats influenced this decision.
Despite the challenges faced, Center Parcs has demonstrated resilience. By the end of the previous year, occupancy rates stood at an impressive 97.3%, reflecting levels similar to those seen before the Covid-19 era. Additionally, revenue between April and December in that year reached £426.6m, signifying a 20% increase compared to the corresponding period in the previous year and an 18% rise compared to pre-pandemic figures.
Center Parcs faced criticism following its initial request for guests to leave their sites on the day of the Queen's funeral. The company explained that this decision was made as a gesture of respect and to allow employees to participate in the historic event. However, the announcement sparked discontent among holidaymakers
