Center Parcs is up for SALE after owners put beloved holiday resort chain on market
THE popular holiday resort chain Center Parcs has been put up for sale for an eye-watering amount.
The current owner, the Canadian private equity firm Brookfield, is hoping to raise between £4bn and £5bn from the sale, reports the Financial Times.
Brookfield bought the holiday business for around £2.4bn in 2015.
The company runs six holiday villages in the UK and Ireland with the centres attracting more than two million visitors each year.
Center Parcs opened its first location in 1987 in Sherwood Forest, Nottinghamshire.
There are now holiday villages at Elveden Forest, Longleat Forest, Whinfell Forest and Woburn Forest.
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The resorts have proved to be particularly popular with families as they feature a number of activities on-site, usually with the central attraction being an indoor waterpark and wooden cabins set in forests designed for cycling.
It opened its first site in Ireland in 2019 with Center Parcs Longford Forest, near the town of Ballymahon in County Longford.
Brookfield has appointed investment bankers to sound out potential buyers, including other private equity firms, according to the FT.
Head of financial analysis at AJ Bell, Danni Hewson, said there still appeared to be strong demand for Center Parcs holidays for now, with holidaymakers currently switch from holidays abroad due to the cost of living crisis.
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She said: "During the pandemic Brits rushed to snap up sought after places, but even with cash-strapped families ditching the extra 'staycation' in favour of one holiday, it's clear by the prices and availability that there's still more than enough business to go around - so far.”
However, she added that with rising mortgage costs and the economic situation there were questions over the potential for future growth.
Earlier this year, Center Parcs scrapped plans to develop a new holiday village in West Sussex.
Last year, Center Parcs was forced to reverse its decision to ask guests to leave its sites on the day of the Queen’s funeral.
It initially said it had made the decision “as a mark of respect” and to allow employees to “be part of this historic moment”.
However, a furious backlash ensured with holidaymakers complaining it would mean some guests having to leave part-way through their break, only to return afterwards.
Center Parcs UK is a separate business from Center Parcs Europe, which has holiday villages in Belgium, the Netherlands, Germany and France.
The European business is owned by Blackstone Group which sold the UK part of the business to Brookfield in 2015.
