Latest leisure property update for 2018

1. loveleisure
ISSUE 15
Specialities: Hotels Pubs and Clubs Leisure Restaurants Marinas
Combermere Abbey:
New luxury B&B after
27 month restoration
Business Rates:
Winners and losers in
2017 Rating revaluation
Leisure Expert:
Sam Spencer
appointed to RICS
President’s Panel
Cheltenham Lodge:
Park keepers cottage
transformed into
idyllic restaurant
IN THIS ISSUE:

2. loveleisure
2018
loveleisure2

3. 3loveleisure
Welcome to
loveleisure
In this edition we see how the leisure
sector has provided an opportunity for
property owners to diversify in order to
access new opportunities. We also track
the changes in the hospitality market as
well as the growing thirst for gin.
We have an excellent example of the type
of diversification the Leisure sector can
provide with the rather grand and formal
setting of Combermere Abbey, Cheshire
that has been brought back to life by its
inspirational owner.
Our visit toThe Lawns caravan industry
event in September highlighted the
increasing quality and sheer range
of mobile and touring caravans now
being produced in the UK, reflecting the
increasing demand in this sector of the
leisure market for higher quality products
and greater choice.
We also reflect on recent professional
activity as well as welcoming new
members to the loveleisure team at
Bruton Knowles.
Finally, if any of the case studies or
professional articles stimulate a desire
for further information then do not
hesitate to contact us.
James Bailey
Managing Partner,
Bruton Knowles
What we do best
Valuations
Provided for all types of leisure property for accounting
purposes or raising finance to facilitate a purchase or
expansion/redevelopment.
Agency
We acquire, sell and let leisure property for private and
corporate clients.
Professional
We carry out rent reviews and lease renewals, rating
assessments and appeals, dilapidations claims, dispute
resolution and management agreement negotiation.
Consultancy
We undertake initial feasibility studies for acquisition
and development.
Planning
Initial appraisals and negotiations with local planning
authorities as well as subsequent planning applications
and appeals.
Leisure Property
Public Houses (Tenanted and Managed)
Restaurants
Hotels
Caravan / Lodge Parks / Golf Courses
Driving Ranges / Garden Centres
Marinas Waterways
The above list is only a sample and, most importantly,
we are always happy to talk to people about their
leisure property aspirations on an informal basis.
Our team is approachable and would be delighted to
discuss any requirements or ideas you may have.
Please feel free to call.
0845 200 6489
There are changes in
the hospitality market as
well as a growing thirst
for gin!
James Bailey

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Property Consultants Help
Bring Historic Nottingham
Pub to the Market
The Griffin Inn located in
Plumtree, Nottingham saw a
transformation at the end of
last year, when Bruton Knowles
brought the property to the
market with Greene King plc
as the client.
Bruton Knowles undertook an initial
site assessment first to advise the
client on the development potential and
associated value of the surplus car park
attached to the well-known village pub.
Contact with the local planning authority
was made by Bruton Knowles, in respect
of the potential residential development
on the surplus car park area.
Architects were then brought in to
provide scheme drawings for review and
Bruton Knowles also commissioned a
Noise Impact Assessment for submission
with the planning application.
After site meetings with the planning
officer and discussions with the Parish
Council, Bruton Knowles submitted an
application for the development of three
detached residential units.
Once planning permission had been
secured, Bruton Knowles provided
valuation and marketing advice to the
client before being instructed to market
the public house, including the car park
area, with granted planning permission
as potential development land.
The property was marketed for an
eight-week period, with Bruton Knowles
undertaking block viewings and
negotiating with all interested parties.
After 30 enquiries in the first month of
marketing, a sale was secured in August
2016 to a local property investor at 14%
over the guide price. The investor then
split the title and resold the pub to a
locally based leisure and hotel operator.
The new owner intends to develop two
new luxury detached houses on the site
with an extensive refurbishment of the
premises to include an extension to the
kitchen and the creation of an orangery
to the rear of the property.

5. 5loveleisure
Glandulas Holiday Park
acquired by Welsh Government
In support of their transport
infrastructure improvement plans,
The Welsh Government (WG)
had decided in 2012 to create a
bypass of the A489 around the
town of Newtown in Powys.
The proposed route tracked south of the
town and at its western end immediately
affected Glandulas Holiday Park, a
successful static van park overlooking
the River Severn. The park is in two
separate sections, one of which is
elevated and alongside woodland.
The scheme proposed a bridge across
the new road, linking the two parts.
Bruton Knowles was instructed by WG
to initially prepare a land cost estimate
prior to the Order being made.
As the planned route passed directly
through the Park, the owners were a
principal objector to the scheme and
submitted their case at the Public Enquiry.
However, the Inspector found in favour of
the scheme and the order was granted.
Immediately following the granting of the
order, WG instructed Bruton Knowles to
negotiate with the owners of Glandulas
Holiday Park and their professional
representatives, with the brief to
determine fair compensation under the
terms of the appropriate Compulsory
Purchase and Compensation legislation.
Following two meetings, Sam Spencer and
the owners’representatives determined
that the optimum solution for all parties
would be for WG to acquire the park
and the business in its entirety, which
would allow the scheme to proceed at
the quickest speed, whilst enabling the
owners to find an alternative property and
business to trade from. Equally WG could
keep the park open, with some allowance
for disruption.
As associate members of the British
Homes and Holiday Parks Association,
Bruton Knowles was able to advise WG
with the benefit of detailed knowledge
of the particular market, allowing
appropriate valuations to be placed on
the land and property assets, whilst
also enabling precise assessments to be
determined and agreed in respect of loss
of business and profit to the owners.
The scheme is now nearing completion
and it is satisfying to note that, whilst the
bypass has made a significant difference
to the landscape, the Park has remained
open and retains its appeal with pitch
enquiries increasing.

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A team of six surveyors from various Bruton Knowles’offices
came together to inspect several UK-wide properties owned by an
environmental education charity.
World Famous Grade
Property Valued for UK
wide Charity
The valuation surveyors were assembled
in January 2016 when Bruton Knowles
was instructed to undertake valuations
every five years for 16 properties
owned or leased by the Field Studies
Council. The properties consisted of nine
freehold sites and seven leasehold sites.
Several heritage assets are included
within the Field Studies portfolio, such
as the world-famous Grade I listed
building, Flatford Mill.
Bruton Knowles’team of six valuation
surveyors were gathered to review all of
the assets which were located from the
Scottish Cairngorms to South Devon
and from Pembroke to Essex.
As part of the instruction, Bruton
Knowles provided full valuation reports
and rationalised comprehensive
existing use values for the client,
based upon trading performance and
referencing current market conditions.
The project was completed in May 2016
when the full reports were delivered to
the client, meeting both the budget and
time constraints.
Flatford Mill

7. 7loveleisure
So are leisure operators winners
or losers in last year’s 2017 Rating
Revaluation? – this depends on how
the Valuation Office has interpreted
valuation principles and their analysis
of trade performance, and with the
additional learning curve of ‘Check,
Challenge, Appeal, things are looking
really interesting.
First, there is the question of timing:
the previous Rating List was based on
2008 trade levels, pre-credit crunch.
This has meant that for many businesses
they have been paying business rates
that are significantly higher than could
be justified, based on their post credit-
crunch earnings.
Unfortunately, trading performances up
to 2015 have formed the basis of the new
Rating Revaluation and this was during
a time of economic recovery; albeit slow
and uncertain. This won’t therefore
necessarily help those businesses claw
anything back or correct the gap that
existed in the interim; however there is
an appeal process that could serve to
correct any current anomalies and go
some way to redressing the balance.
There are big variations in the level
of performance, depending upon
business location and sector, so there
will be winners and losers in the current
revaluation. So what factors may affect
rateable values for businesses in the
main leisure sectors?
Caravan Parks
Since 2008, sites have shifted towards
an emphasis on lodge sales, whilst
maintaining fleet income has become
something of a challenge. Lodges have
become more sophisticated, including
two-storey models, whereas traditional
rating valuation models do not reflect
these changes.
In short, caravan parks may gain from this,
but it is expected the Valuation Office will
have reviewed its approach to this sector.
As we start to get detailed valuation
breakdowns, we can gain further clarity
on the new approach.
Pubs
It’s no secret that pubs have struggled
to adapt to the rapid changes in what
consumers want. Some have successfully
moved into food sales to maintain profits
but many others have not managed nearly
so well. The rates issue hasn’t helped,
with inequalities in rental values versus
actual turnover contributing to a number
of pubs closing down.
As anticipated, many pubs have seen
a decrease in their rateable value, but
businesses that have suffered over the
past few years are in some cases still
having to wait to achieve some degree
of balance during a lengthy period of
transition, which phases down reductions
in rates liability.
An initial review of an assessment can
gauge any potential for reducing the
value and understand the impact of any
transition, to establish the impact on
rates bills for the remaining period of the
revaluation, including any refunds back
to April 2017.
Hotels
With many hotels’rateable values
determined by reference to gross
receipts, there’s plenty of room for the
value of actual trade to be overestimated.
For example, if a hotel decides to cater
for large coach parties working on low
margins, this may not be reflected in the
figures for gross takings.
If you run a hotel, consider then how you
make your money and the margins not
just the gross take.
Festival Sites
Owners of grounds and estates
running festivals have often worked
to support agriculture and woodland
Rental levels are the preferred basis for determining rateable values;
however, the impact of the latest revaluation on the leisure industry will be
determined by comparing trade between 2008 and 2015. This is because
rental comparisons for leisure property can be difficult and more typically,
there are not always many rents available.
Paul Giness
Rating Consultant
paul.giness@
brutonknowles.co.uk
mobile: 07970 546926
Business Rates:
Be Prepared
in an attempt to diversify, but in doing
so, they’ve attracted the attention of
local authorities. What has happened
is that local authorities see these extra
activities as an opportunity to add ‘value’
to business rates for that area, and in so
doing add more strain to what is already
a fairly speculative business model.
On top of this, established festival sites
will have seen significant increases
in revenue since 2008 following an
increased demand for live performances,
not least from the music industry itself
as it copes with the falling revenues from
sales of CDs. All this is increasingly the
upward trend in rateable values across
this sector.
In conclusion, the heavy reliance on
actual trade relating to many leisure
sector businesses, means that in effect
the amount of rates claimed by the
Local Authority is just another form
of income tax.
Leisure-related businesses need to
be prepared: look at your actual trade
figures, not just the top line and seek
professional guidance to ensure that
your current rateable value is as low as
it can possibly be.

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9. 9loveleisure
I felt it was very important that once
repaired, each one had to have an
enterprise which would secure its future,
as well as contribute to the rebuilding
of an energetic, multi-faceted estate
operation that integrated the traditional
farming elements with newer commercial
concepts. It was also very important
that the new businesses would gel with
my personality as I am the driving force,
and would be embraced enthusiastically
and with total commitment. It was also
important to prioritise them, as funds
were limited and grant and bank support
was vital.
I saw an exceptional place with
extraordinary landscape and
architecturally significant buildings that
needed a new and dynamic energy in
them. So with over 18 years in lifestyle
and tourism PR and marketing, my
‘people’ focused personality looked at
hospitality options. The Stables were
turned into 10 holiday cottages sleeping
49 over an 18 month period, opening
at Christmas 1994. My years in the US
taught me that you aim for the top, so
country house designer interiors with
add on services were introduced into our
offer – an anathema with the concept of
holiday cottages in the UK!
This initial idea also brought benefits
to our local community – introducing
home cooked foods, encouraging
guests to visit local towns, eat in pubs
and restaurants and enjoy regional
and local activities. We had to employ
a housekeeper, cleaners and sales
and admin staff. The transformation of
the abandoned first walled garden for
visitors’ enjoyment meant bringing on
a full time gardener and in time over
the next 15 years as the whole garden
was brought back into use, the team
expanded into three full time gardeners,
a trainee and outside contractors.
The estate opened up to do outdoor
concerts and annual bluebell walks
and the main house was opened to
visitors, tour groups lectures and
business meetings, and in 1995 also as
a wedding venue. Initially this was seen
as an added opportunity to fill out of
season accommodation but in 2007 the
Glasshouse was restored in the Walled
Gardens and the wedding business
became a reason to restore all the Walled
Gardens. Over seven years it became the
dominant part of the business and staying
onsite a definite USP for couples with the
balance tipping over from pure leisure to
wedding accommodation.
Combermere Abbey
“With seven listed buildings all in various states of dereliction, a traditional approach to
running and managing the estate as a farm only was not going to produce the income stream
to repair them. So alternative solutions had to be found...
I saw an exceptional place with
extraordinary landscape and architecturally
significant buildings that needed a new and
dynamic energy in them.
Sarah Callander Beckett returned to Combermere
Abbey in 1992 after many years of working in the USA
in marketing and public relations.
loveleisure asked her about the extraordinary changes
that were required to make it a success...
Key to all this was the marketing and PR
– and goodness how that has changed.
From the era of paper and snail mail
and the written word – to the digital age
with websites, social media and internet
communication.We have always invested
PR to spread the word and I believe it was
absolutely the right way to go.
The thirteen year battle to secure enabling
development funding for the derelict North
Wing in the Abbey was won in 2013 and
after a 27 month restoration project, it is
now a luxury bed and breakfast and also
the bridal suite. It adds a very exciting new
component to the overall business and has
ensured the grade listed Abbey is off the
At Risk register and sustainable longterm.
Today, the Combermere Estate is like a
patchwork quilt – it has kept its traditional
roots, protected and enhanced its heritage,
opened up to embrace the public in a
manageable way so that the quality of the
guests experience is never compromised
by its new enterprises. It is very difficult to
identify exactly the amount of extended
benefit our businesses bring, but it is
substantial and I am proud that with the
introduction of new enterprises it enables
it to also maintain its older patronage of
the wider community – bringing benefits
to all into the future”.

10. loveleisure10
When we were instructed to value Alfoxton Park the name rang a bell
in the literary depths. Meeting the owner produced the explanation.
It is the former home of William and
Dorothy Wordsworth. Wordsworth
is best known for the introduction of
Romanticism in English poetry with
his friend Samuel Taylor Coleridge. It
is reputed that Coleridge started work
on The Rime of the Ancient Mariner at
Alfoxton Park.
During the 1800s the property was in
private hands and became a hotel in the
early 1900s.
The property is a fine Georgian house
built in 1707 and surrounded by about
55 acres of deer park.
It has fallen into disrepair although
plans are in place to fully renovate the
house and develop some of the ancillary
buildings. There is a superb old barn
with a walled garden, opposite the
main house.
Our valuation considered the potential
for a new 4 or 5 star venue in this lovely
tranquil location.
Alfoxton Park, Somerset

11. 11loveleisure
Located in the heart of Cheltenham, former park-keepers cottage,
known as Montpellier Lodge, was sold by property consultants,
Bruton Knowles.
The unique building was left unoccupied
for more than decade and has now been
converted into an up-market independent
restaurant to fit in with the stylish and
artistic feel of the area.
Bruton Knowles was instructed to let or
sell Montpellier Lodge and, with its high
knowledge and expertise of the local area,
it enabled the property consultants to
share the vision and enthusiasm for the
building’s transformation.
Refurbishment works had been started
previously but the property was not
completed due to the owner’s financial
constraints.
Bruton Knowles saw a number of offers
for both the letting and sale of the
property but all proved to be unsuccessful
as the cost of the works to complete the
build proved to be more than expected.
After 18 months a potential tenant was
found who understood the values, costs
and associated challenges with finishing
the works. Lengthy negotiations were
then able to take place and as a result the
deal was agreed and property was sold.
The restaurant is situated in the perfect
location surrounded by the idyllic
Montpellier Gardens which helps to
create a modern, relaxed and tranquil
dining experience for all to enjoy.
Unoccupied Lodge Transformed
into Idyllic Restaurant

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Specialist Charity
Valuations Secure
Future Facilities in
Wimbledon and Putney
Bruton Knowles was appointed to value four licence agreements
for sports pitches and land on behalf of the Wimbledon and Putney
Commons Conservators.
The Conservators, which is also a
registered charity, was established by
Act of Parliament in 1871 to protect and
manage Wimbledon Common, Putney
Health and Putney Lower Common.
Whilst the land was being utilised to
support community football and rugby
sport facilities and public houses with
outdoor eating and drinking areas, it was
vital for the charities licences to meet the
requirements of the Charities Act.
Our experts carried out an in-depth
valuation of four licence agreements which
included three football pitches, changing
rooms and a club house licensed to Old
Thorntonians Football Club.
Rugby pitches, changing rooms and
showers licensed by London Cornish Rugby
Club also required valuations, as well as
land on Putney Lower Common licenced to
the Spencer Arms public house.
The fourth area was land by The Telegraph
public house on Putney Heath, which was
licenced for use as an outside eating and
drinking area.
Our team inspected all four sites,
reviewing the existing licence agreements
and then proposed suitable licence fees
which were successfully renegotiated with
the respective sports clubs and pubs.
Wimbledon Common

13. 13loveleisure
Hospitality management company, Khanna Enterprises instructed
Bruton Knowles to discreetly market Best Western Westminster Hotel
in Nottingham without any publicity.
The project started when Khanna
Enterprises made the strategic
decision to unite all sites within a
defined geographic area, meaning
they no longer required the
Nottingham site.
Bruton Knowles’marketing strategy
included a carefully placed web
presence, using the Nottingham office’s
address and ensured that all enquirers
signed a confidentially agreement prior
to receiving information.
Knowledge and expertise on this
property proved to be key a part
in the project, and with Bruton
Knowles’understanding of the seller’s
requirements and the ability to identify
potential, suitable buyers without
advertising, the property consultants
were able to handpick the final buyer.
The property was sold to a private
buyer who has undertaken significant
refurbishment works. Khanna
Enterprises have retained their hotel
in Oxford and plan to develop in
Manchester.
Guidance and advice was given to all
parties involved by the Bruton Knowles
team to ensure that the transaction
was completed promptly, smoothly
and discreetly to meet the requests
of the client.
Bruton Knowles Privately
Markets Nottingham’s
Best Western Hotel
13loveleisure

14. loveleisure14
Bruton Knowles
Promotes Residential
Development on
Holiday Park
Planning permission was obtained by Bruton Knowles for six
dwellings on a caravan sales site in the open countryside in
the Malvern Hills.
Bruton Knowles was instructed to
obtain residential development
on the brownfield site, located in
Worcestershire. It was particularly
noteworthy due to the holiday park’s
location being a considerable distance
from the closest settlement boundary.
Malvern Hills District Council took the
original appeal approval to the High
Court on a technicality.
The High Court agreed with the council
that the appeal had been determined
incorrectly and approved a review
of the original case.
With additional insight into land
legislation and developing on
brownfield land for residential use,
we supported a submission of the
appeal making further arguments to
support the development on site.
The decision now provides a
determined proposal for the
brownfield land creating additional
residential premises.

15. 15loveleisure
Bruton Knowles has recently had the pleasure of valuing
Kelham Hall for the new owner, Jonathan Pass.
Kelham Hall
The Council recently moved into a
new headquarters in Newark and
Jonathan was able to purchase the
entire property. There is extensive
space which includes some superb
architectural features. He has
significant plans to transform the
east and south-facing rooms on
upper floors into bespoke bedrooms,
bring further space into use and offer
history tours of the building and
grounds, amongst other ideas.
In its location beside the River Trent,
the first impression of Kelham Hall is its
familiarity and you realise that it looks
very similar to London’s St. Pancras
Renaissance Hotel. This is because it
was designed and built by the same
architect, George Gilbert Scott, after
the previous stately home burnt down
in 1857. It is described as “…a redbrick
riot of Gothic styles, with towers, gables,
arcades, exquisitely carved columns
and fireplaces, and more than a score
of different window designs”.
For 70 years Kelham Hall was home
to a religious order of monks, who
built the enormous domed chapel in
Byzantine style and added extensive
accommodation which is let as offices.
Latterly the property has been the
head office of Newark Sherwood
District Council. The Council have run
events in the Coach House and Dome
for many years, which more recently
were operated by the new owner under
licence, specialising in weddings. It is a
spectacular venue for weddings.
Sam Spencer says: “I have known this
lovely building for decades and it’s good
to know that it will finally be put into a
use that it deserves. So many more
people are now going to appreciate its
grandeur and charms”.
With its excellent location in the heart of
England, we expect that business will be
brisk and look forward to seeing the next
chapter of Kelham Hall’s story realised.
I have known this
lovely building for
decades and it’s good
to know that it will
finally be put into a use
that it deserves.

16. loveleisure16
Development woodland in established park
with consent for 18 lodges
Expressions of Interest Invited
Kenwick Park Estates
Kenwick Park is a well-established 4-star resort Hotel and Spa two miles south of Louth in the Lincolnshire
Wolds Area of Outstanding Natural Beauty.The site is an area of woodland adjacent to developed lodges,
south of the main hotel.
Approximately 6.5 acres of virgin
woodland, adjacent to developed
lodges and accessible by all-weather
track from the hotel entrance.
The property comprises well-
established deciduous woodland
which is ready for development.
Kenwick Park is a long-established
resort hotel and spa with adjacent
golf course and other facilities. Lodge
owners are encouraged to join and use
the facilities.
All services are available for connection,
subject to contractual agreement.
The site has planning permission for
18 lodges from East Lindsey District
Council Refs. N/100/00132/11 and
N/100/00366/14. Tel. 01507 601111
Offers in excess of £600,000 are invited
for the freehold.
The site is identified in red; the hotel
complex is at the top of the picture,
which shows the positon of the access
drive to the development plots.
Louth, Lincolnshire LN11 8NR

17. 17loveleisure
Despite being a trade show the event has
two visitor days enabling the wider public to
view the latest models being launched for the
2018 season. Alongside the caravans and park
homes a substantial number of supplier and
service exhibitors, ranging from insurance,
security devices, awnings and a huge range
of accessories.
Whilst the show attracts over 3,500 trade visitors
from the UK and Europe, the public has an
opportunity to view a significant range of outdoor
leisure accommodation to suit both the budget
and luxury end of the market.
The continued rise in popularity of caravanning
was self-evident when attending the event on
Saturday 2nd September, with large crowds
and high levels of interest being shown in both
touring and static caravans. The luxury chalets
drew the largest crowds, who were fascinated to
see the latest high specification offerings from a
range of manufacturers, with the comparison to
domestic housing easily being made and the gap
definitely closing.
The show also enables you to reflect on the
breadth and depth of the UK outdoor leisure
industry and its ability to provide both products
and services to suit a range of pockets, lifestyles
and age groups. Subject to continued investment
the caravan industry should continue going from
strength to strength as the levels of innovation
continue to increase on an annual basis, from
construction techniques through to the standard
of equipment and features.
Much of the future investment will need to be
focused on the manufacturing facilities and
processes to ensure that the industry can
keep pace with market demand and satisfy the
increasing customer expectation that comes
with more sophisticated and expensive products.
The challenge is to sustain innovation and
engineering excellence as manufacturers, retailers
and operators as the buying public continue
to make their own individual investments,
often at substantial levels.
This event is organised by the Hull and East Riding Caravan Manufacturers
Association as a trade show featuring more than 130 new touring caravans and
over 150 caravan holiday homes from most of the major UK manufacturers.
The Lawns
W: pathfinderhomes.co.uk | E: sales@pathfinderhomes.co.uk | T: 01626 833 799 | Explore our Show Homes:TQ12 6TU
ImagescourtesyofPathfinderHomes
Events

18. loveleisure18
Sam, who is an associate at property
consultants Bruton Knowles, will now
work alongside other RICS President’s
Panel members to provide resolutions
to land and property industry disputes
as part of the organisation’s dispute
resolution service.
He said: “It is a huge accolade to have
achieved this appointment. I am looking
forward to bringing my expertise to
the panel, sharing my knowledge and
supporting hospitality, leisure and
licenced property clients with any
disputes on behalf of RICS.”
The Bruton Knowles expert who
specialises in sales, acquisitions,
management agreements and business
and property valuations is an experienced
Chartered Surveyor and Registered Valuer.
He has more than 20 years’experience
of working in the hospitality, leisure and
healthcare property sectors.
James Bailey, managing partner of Bruton
Knowles said: “Sam’s appointment to the
RICS President’s Panel is testament to
his vast experience within the sector, and
he will be an important addition to the
organisation. Bruton Knowles will also
benefit from having one of the country’s
most highly regarded specialists working
within its team.
“The commercial and investment acumen
which Sam holds is vast, especially in
mixed and alternative-use developments.
Our clients can be confident in his ability
to provide the most knowledgeable advice
and achieve the maximum potential and
return from each property scheme and
transaction.”
RICS Director of ADR Services, Dr John
Fletcher, said: “RICS’Dispute Resolution
Service (DRS) is the UK’s leading provider
of alternatives to the courts for the
resolution of property related disputes.
Sam Spencer has been appointed to the RICS (Royal Institution of
Chartered Surveyors) President’s Panel – and is now one of only a few
panel members in the Midlands who specialises in the hospitality,
leisure and licensed property trade.
“We also accredit members to act as
expert witnesses to support and inform
decisions in litigation and other judicial
proceedings. DRS will only appoint
professionals as expert witnesses when
we are satisfied they are highly proficient
in terms of their subject matter expertise
and ability to discharge the role to a very
high level.
“Sam’s appointment to the President’s
panel was made following a rigorous
interview process. His market knowledge
is first rate, and his appointment will
ensure DRS will continue to deliver
a superb, high quality, service to the
property industry.”
Bruton Knowles has 13 offices across the
UK and helps property owners, occupiers,
developers and investors to achieve more
from their land and property.
RICS is a global professional body, which
promotes and enforces the highest
international standards in the valuation,
management and development of land,
real estate, construction and infrastructure.
For more information visit
www.brutonknowles.co.uk
Leisure property expert
joins RICS president’s panel
It is a huge accolade
to have achieved this
appointment...
Sam Spencer

19. 19loveleisure
loveleisure team
welcomes Adrian James
and Sarah Kingston
As a Chartered Surveyor and RICS
Registered Valuer with over 35 years’
experience in the leisure sector Adrian has
provided valuations for pubs, restaurants,
nightclubs, hotels, guest houses, holiday
cottage developments, static and touring
caravan parks and golf courses.
In recent years he has carried out all types
of leisure valuations in connection with
transactions, lending for improvements
and refinancing as well as for company
accounts, dissolution of partnerships in
locations across South, West and Mid
Wales and southern England including
the Cotswolds, Gloucestershire,
Herefordshire, Somerset and Wiltshire.
Adrian has carried out work for clients
including sole traders, partnerships and
companies covering single assets up to
larger portfolios and for lenders including
high street banks, challenger banks and
specialist/secondary/tertiary lenders.
Over the last year Adrian has carried out a
major portfolio valuation of pubs, including
all types of operation from large recently built
and very high-performing food-orientated
houses, to small more traditional back-street
houses relying on locally generated wet trade.
He has also been busy with valuations
of hotels from Pembrokeshire to Surrey
and the south Devon coast, from 10
bedrooms to 70, and from unclassified
to 5 star rated, including properties with
franchised restaurants, specialist wedding
venues and leisure-driven properties with
spas, leisure clubs and golf facilities.
Adrian is delighted to be joining Bruton
Knowles loveleisure team and delivering high
quality advice to help you achieve your goals.
Adrian James has joined Bruton Knowles as Partner and Head of the Cardiff office.
Sarah joins as Associate to help handle
a steep increase in commercial and
investment property-related enquiries.
She joins Bruton Knowles from Eddison
Taylors where she was involved in
the valuation of licenced and leisure
property across the South East; she
also worked for organisations in the
healthcare and retail sectors.
Bruton Knowles managing partner James
Bailey said: “The Leisure sector is enjoying
a continuing period of strong growth.
“Sarah brings valuable experience to the firm
and will help boost the reputation and profile
of the loveleisure team. She will increase
our capacity to service our regular clients
and provide timely advice to new ones.
“Sarah is the latest key appointment we
have made to keep pace with the workload.
We intend to recruit further high calibre
staff to realise our growth plans.”
Sarah qualified as a chartered surveyor
in 1992 and has worked in the
property industry since that time.
Commenting on her appointment
Sarah said: “This is an exciting time
to be joining the loveleisure team at
Bruton Knowles. I am looking forward
to generating business and increasing
market share across the South East.”
Bruton Knowles is strengthening its
LoveLeisure in the South East with the
appointment of Sarah Kingston.
delivering high
quality advice to
help you achieve
your goals.
Adrian James
I am looking forward
to generating business
and increasing
market share
Sarah Kingston

20. loveleisure20
A recent report in The Times suggests that gin has become the biggest selling spirit
in the UK, which is a remarkable transformation in its fortunes, having lagged a poor
third behind Scotch Whisky and vodka for decades.
Britons set new gin record after
buying more than 47m bottles in 2017
Many people are familiar with the
classic gin and tonic, allegedly
developed in India during the Raj,
the tonic referring to the quinine in
the soda water which helped prevent
malaria, the taste of which the gin
supposedly disguised.
Craft gin has become a proper ‘thing’ in
the last three years and there are now
many bespoke gin bars where one can
go and try huge varieties of different gins
and matching tonics. They turn the GT
into an art-form, as we discovered at John
Gordons in Cheltenham, which has an
enviable ambience in summer or winter.
Trying to work through the 100 Gins To Try
Before You Die book is a challenge with
lots of fun. We have also recently enjoyed
a visit to Sipsmith during a week-end
which almost became a “Fullers” tour of
London, and a day at the Gin Festival, both
thoroughly recommended whether or not
gin is your tipple.
For many years the market has been
dominated by two big brands but we
have found some real favourites which
are both interesting and lovely. It is also
great news that British craft gins and
tonic makers are regularly winning top
awards at the International Wine and
Spirits Competition.

21. 21loveleisure
The hotel market certainly
seemed to hit its straps in 2017
following a fairly moribund year
in the previous 12 months.
Preliminary reports of activity
suggest that the total value of
hotel deals in 2017 will be well in
excess of £5 billion, a significant
increase from 2016, driven by an
increase in activity from overseas
investors and a more relaxed
attitude towards lending from the
banking sector.
Hotels
Previous political events have had a
significant influence on this increase in
activity, with a notable upsurge in tourist
income throughout the UK principally
enhanced by the fall in the value of the
pound following the EU referendum
vote, and helping hospitality businesses
across the UK to benefit.
However, notwithstanding the increased
activity, a recent review from Hotstats
analyses the challenges still remaining
for individual hotels and groups in
maintaining margins, specifically where
growth in REVPAR is cancelled out
by the rising costs of utilities, payroll
and maintenance.
Certainly hoteliers will have to anticipate
continuing increases in energy and
payroll costs for the foreseeable future
and budget accordingly.
Whilst 2017 saw a modest increase in
REVPAR (revenue per available room)
these were largely countermanded in
London by rises in operational costs.
In the Provinces the REVPAR increase
was somewhat better, from a lower base
as overall occupancy improved too,
in line with general economic trends.
PwC predict that operators will see
further modest increases in REVPAR
during 2018, although overall
performance is difficult to predict given
the continuing political uncertainty.
Bruton Knowles has been involved in a
number of hotel transactions including
the off-market sale of the Best Western
Westminster Hotel in Nottingham and
valuations of significant numbers of
hotel assets.
Professional
With considerable experience in the
leisure and hospitality markets, Bruton
Knowles regularly receive requests for
professional advice in respect of the
planning, landlord and tenant and expert
witness matters from a variety of clients.
The firm has a number of Chartered
Surveyors who are regularly called upon
to provide expert witness evidence and
as a result we have provided commentary
in respect of feasibility/planning gain
of hotel projects in Torbay, the Cotswolds
and Yorkshire. We’ve also provided
advice to a number of local planning
authorities in respect of planning
matters involving sustainability and
viability of public houses, completing
reports on properties in Oxfordshire,
London, Buckinghamshire, Hampshire
and Lincolnshire.
We currently advise Starbucks on
compensation matters and have
provided advice to private clients
in respect of rent reviews and
lease renewals in Lincolnshire,
Nottinghamshire and Gloucestershire.
Hoteliers certainly have further challenges
to face during 2018 with staffing and the
statutory Minimum Wage increases, rising
fixed costs and potential fluctuations
in demand.
Much of the activity in the market place
has been attributed to a significant
volume of individual transactions,
some deriving from the churning of larger
portfolios and the increase in achievable
sale prices due to the increased business
opportunities available.
Reports suggest that foreign investment
accounted for about 45% of transactional
volumes, with the remainder being
made up by UK domestic buyers. It is the
latter category where Bruton Knowles is
principally involved with hotel deals.
The other factor helping the hotel market
has been a review of the sector amongst
the principal lenders and increased
proactivity by the banks in the hotel
and hospitality market. Interestingly at
a recent forum which has been openly
published lenders were particularly
ready to confirm their attitude towards
hotels as funding an entire business
income stream including an asset, rather
than just a cold real estate deal.
There is also an increasing willingness to
consider multi-tiered lending based upon
business and asset funding underpinned
by a ground rent investment, which
enables lenders to securitise for longer
term whilst spreading their risk.

22. 22 loveleisure
There is now a myriad of small/embryonic
pub companies/craft brewers who are hell-
bent on expansion, yet are struggling to
find available property. For the new start up
micropub there is still possible conversions of
small and empty retail units available in most
regional town centres. However, there are
now a great number of real ale breweries that
have been brewing for over ten years and have
aspirations of more physical outlets and of a
larger size requirement, usually comprising
an actual trading area of over 3,500sqft.
These units are harder to find in appropriate
locations and with most available options
being leasehold rather than the preferred
freehold option.
2018 will of course be defined by whether
merger and acquisition activity or the
rationalisation of some large pub estates
brings a sufficient number of opportunities for
aspiring pub companies. Unfortunately, most
opportunities that do arise will be snapped
up by the much larger family brewers such
as Youngs and Fullers in the south and the
likes of Robinsons or J W Lee’s, for example,
in the north. These parties are cash rich and
all desire to grow their estates. In recent
years they have had to push their regional
boundaries to achieve this. A positive of
this pent up demand is that whilst there is
always a threat of alternative use when a pub
becomes available on the open market there
is now a trend for continued use as a public
house, given the overall demand.
The other trend going forward may be more
joint ventures such as that recently announced
between Derbyshire Craft Brewer, Thornbridge
and Craft Beer Distributor and Pub Company,
Pivovar. Thornbridge outlets are now planned
in Birmingham, Manchester, Bristol and Hull.
As a customer there has never been a better
time for a weekend foray into your local town
centre and to appreciate the wide range of
real ales on offer. Pubs are a key feature of the
UK culture and economy and this sector will
fare much better in 2018 than the restaurant
sector, which is saturated in most big cities
and with associated rising operational and
property overheads.
The hotel sector is doing well at the present
time in terms of operational performance and
this is partly to do with the weak pound and the
trend for “staycation” as well as more foreign
tourists visiting Britain. This staycation trend
will continue and therefore benefits those pub
companies such as perhaps Wetherspoons and
Mitchells Butlers which have assets that, as
well as wet trade, have a healthy food trade
but also have letting bedrooms. Indeed these
large pubco’s are currently reviewing their sites
and looking to provide more letting bedrooms,
where viable.
There is also a continued trend of more
holidays and short breaks/celebrating special
occasions rather than persons buying “things”
such as clothes, etc. The football World Cup
in 2018 will also benefit publicans, assuming
England progress beyond the group stages.
On a negative note, pubs are still generally
suffering from increased operational and
premises costs which of course affect overall
net profit. Whilst items such as utility bills
are now somewhat more under control,
other elements, including increased food
costs, general red tape and business rates
affect most pub businesses. Some well run
city centre pubs are affected most by business
rates being punished for their own success
and endeavours, to increase turnover.
A percentage of this turnover is then used to
calculate the property’s rateable value and
from that is derived the rates payable. This
seems unfair.
Whilst Brexit is generating a drag on economic growth, occupational
demand is as high as ever within the pub property sector.
General Pub Trends 2018
The hotel
sector is doing
well at the
present time
in terms of
operational
performance

23. 23loveleisure
Perhaps in 2018/2019 it will also become
apparent that with the popularity of real
ale unfortunately too many small breweries
have opened up and that some consolidation
will be required in this subsector. Some
independent real ale breweries such as
Titanic in Staffordshire and Ossett Brewery
in Yorkshire have now been brewing for over
twenty years and have certainly weathered
the storm, whilst more recent breweries might
well not make the same leap to operating
and/or owning multiple outlets.
As regards the property market generally,
investor demand is currently for prime real
estate and, in particular, on long income
producing assets as well as those with
strong rental growth prospects. The current
improved outlook for rental growth is
supporting continued investor confidence
in UK real estate. This investor refocus on
income is apparent in the rising acquisition of
“alternative” asset classes, to include hotels,
pubs and student housing. As regards the
pub sector, there are very strong covenants
to rely on to include the likes of Whitbread
and Greene King although funders are now
becoming much more savvy and taking a view
on more entrepreneurial operators who have
a track record of success. In Manchester, for
example, some of the highest turnover outlets
incorporate live music with real ale, food and
in-house bakeries for example, and include
independent multi-concept operators such as
Mission Mars, etc.
In summary, the pub market continues to
evolve and for the better, raising standards
generally and remaining very innovative.
Long may this continue.
Boathouse
restaurant
Sudbury
The Fox and
Duck
Buntingford
The Gallows Inn
Derbyshire
Harrington
Arms
Shardlow
Horse Jockey
Gainsborough
Marine Parade
Clacton
Moorings Hotel
Sevenoaks
Oakley Lodge
Cambridge
Old House
at Home
Basingstoke
The Plough Motel
Stoke-on-Trent
The Plough
Oxford
The Plum and
Partridge
North Yorkshire
Red House
Andover
Red Lion
Hampshire
Spencer Arms
Putney
Star Inn
Leicester
Trocadero
Gillingham
Manor Hotel
Mundesley
Some of our recent valuations

24. loveleisure24
Fast forward to 2017 when Sam was
instructed to carry out some valuation
work for Charles Nickerson in Louth,
at their initial meeting Charles asked
Sam if he wouldn’t mind having a look
at the Masons Arms to proffer some
informal advice.
Charles had recently acquired the
lease on the premises and was in
the process of totally renovating the
property, using traditional methods
and materials to keep faith with
the original building, and with a
view to upgrading the hotel and its
accommodation, so creating a venue
of which Louth could be proud.
In the initial discussions Sam
suggested to Charles that he acquired
the 900-year ground lease, effectively
giving him a freehold interest, which
would then properly reflect the value of
the renovation work. This he duly did.
The pictures show the completed
hotel renovation. Unfortunately we
do not have any pictures showing
the interior of the property prior to
Charles’ ownership, although it is plain
to see that the hotel has been given a
significant transformation.
The programme of works and
subsequent re-opening has garnered
significant local and regional publicity
and we understand that the ballroom
is receiving a lot of enquiries for future
functions.
In essence, the hotel now provides a
very pleasing bar and dining room area
on the ground floor, a lovely tea room/
private dining room on the first floor
overlooking the market place, and
10 excellent contemporary bedrooms.
The property and business is a credit
to Charles Nickerson and an excellent
example of what can be achieved with
the application of creativity, time and
significant investment.
Valuations
Masons Arms Louth
About 20 years ago Sam Spencer was
invited by the owner of the Masons
Arms in Louth to offer the leasehold
business for sale to the open market.
At the time the property was a typical
town centre former coaching inn, with
some interesting original features and
a loyal local trade.
The property had a public bar, dining
room and a large ballroom which was
largely unused. In addition, there
were 10 standard bedrooms.

25. 25loveleisure
Adrian James
Partner, Cardiff
adrian.james@
brutonknowles.co.uk
mobile: 07738 103289
James Pullin
Senior Surveyor, Gloucester
Nicholas Broadway
Surveyor
Paul Giness
Rating Consultant
james.pullin@
brutonknowles.co.uk
mobile: 07500 826268
nicholas.broadway@
brutonknowles.co.uk
mobile: 07826 946373
paul.giness@
brutonknowles.co.uk
mobile: 07970 546926
James Bailey
Partner, Nottingham
james.bailey@
brutonknowles.co.uk
mobile: 07715 540019
Steven Tasker
Associate, Manchester
steven.tasker@
brutonknowles.co.uk
mobile: 07718 155832
Sarah Kingston
Associate
sarah.kingston@
brutonknowles.co.uk
mobile: 07730 566742
May Dudley
Senior Surveyor, Birmingham
Jeremy Pyatt
Planning Partner, Birmingham
may.dudley@
brutonknowles.co.uk
mobile: 07717 343331
jeremy.pyatt@
brutonknowles.co.uk
mobile: 07827 304455
Sam Spencer
Associate, Nottingham
sam.spencer@
brutonknowles.co.uk
mobile: 07855 247373
Nicola Hudyba
Associate, Birmingham
nicola.hudyba@
brutonknowles.co.uk
mobile: 07967 824558
Adrian Walsh
Partner, Birmingham
adrian.walsh@
brutonknowles.co.uk
mobile: 07768 258362
Your loveleisure team...
The loveleisure team
are the best in the
business; professional
and client focused. Each
is a specialist in their field
and dedicated to helping
you achieve your goals.
Working with single assets to
large portfolios our LoveLeisure
team has the in-depth
knowledge and experience to
deliver high quality advice – so
you can always count on us.
Our approach to business
makes us different, we don’t
just offer insight, experience
and expertise, we take the
time to listen and understand
your needs, relationships
matter to us and clients find
us a refreshing change.
For personal impartial advice
you can place absolute trust
in our loveleisure team.

26. 26 loveleisure
An approach you will value
Valuations
We have the experience and local market knowledge to value all
types of property for accounting purposes, sales and purchases
or for raising finance for expansion and development.
Planning
We can help at every stage of the planning process from
initial appraisals and negotiations with local planning
authorities and stakeholders through to planning
applications and dealing with appeals.
Business Rates
We can ensure that you don’t end up paying too much,
understand your rateable value and advise you on how to
minimise and manage your business rates.
Landlord and Tenant
When entering into a lease you need to understand the
terms and conditions negotiated at the outset to help ensure
the best conditions for you and your business during the life
of the lease.
Building Consultancy
From undertaking building surveys to planned preventative
maintenance programmes, we take care of every aspect of
your property lifecycle so you can focus on doing what you
do best.
Agency
Even in difficult economic conditions our passion for selling,
leasing or acquiring leisure related property has resulted in
successful results for both our private and corporate clients.
Contact: Adrian James, Sam Spencer, Steve Tasker
Contact: Jeremy Pyatt
Contact: Paul Giness
Contact: Adrian James, James Bailey, Sam Spencer
Contact: Adrian Walsh
Contact: Sam Spencer

27. 27loveleisure
Expressions of Interest Invited
An impressive listed Country House to be redeveloped
Overstone Hall
Overstone Hall is a Grade listed building, originally constructed as a country house comprising
circa 119 rooms but latterly used as a school.
The Hall occupies approximately
35 acres of gardens and parkland.
In 2001 the property was the subject
of a major fire. which caused
substantial damage to the principal
parts of the building, including the
loss of all major interiors. Since that
time there have been no works of
stabilisation or restoration.
Structurally significant works would be
required in order to restore the building
to its pre-fire state. A scheme of works
that would restore the external fabric
and appearance of the building and
the major elements of its internal plan,
including key features such as the formal
entrance hall and staircase is currently
being prepared for formal submission to
the local planning authority.
In a restored state the property has the
potential for a variety of commercial,
social and residential uses including:
a single residential dwelling; hotel,
restaurant, residential and non-
residential institutional use, spa,
care facility, offices and education or
training centre. The restored Hall may
also appeal to individual parties to suit
bespoke requirements.
48,230 Sq Ft (4,480.57 Sq M)
CGI image of how Overstone Hall
could potentially look restored
Northampton, NN6 0AS

28. loveleisureISSUE 15
0845 200 6489
www.brutonknowles.co.uk
This publication is intended as a general guide, and although every effort has been
made to ensure accuracy, liability cannot be accepted for any errors of fact or opinion.