The leisure sector has been through huge amounts of change since the turn of the decade. It was not so long ago that hotels, leisure parks and resorts, and even stadiums couldn’t open their doors, as lockdown stopped mass gatherings during 2020 and 2021, while the staycation boom was a huge opportunity for operators of holiday parks as the economy began to re-open. 

There was a lot more to follow in 2023 and 2024, as the effects of the pandemic continued to be felt. The pent-up demand for international travel saw many people prioritise holidays abroad, while the cost-of-living crisis put pressure on people’s spending at home.

So, what does next year – or even the remainder of the decade – have in store for leisure operational real estate? As we approach the mid-point of the 2020s, it’s worth reflecting on how the events of the last five years have affected the sector and how they will influence the challenges and opportunities that lie ahead.

Holiday, lodge, and caravan parks

There are few areas in leisure that have gone through more change in recent years than the parks sector – the closures of the pandemic were immediately followed by record trading levels. While that has tempered in the last 18 months, many operators have reported robust performance and the sector’s revenues are expected to pick up from 2025 onwards, growing by 2.6% to 2030, compared to just 0.7% between 2020 and this year.

Deal volumes have decreased from the peak of 2021 and 2022, and we expect the market to remain subdued in the short term as investors wait for the cost of debt to fall and trading conditions to stabilise. Some notable sales over the last 12 months in Scotland include the sale of Moness Resort in Aberfeldy to the US-based company Discovery Leisure, Faskally Woods Caravan Park in Perthshire to Wood Leisure Group, and Park Holidays UK sold Turberry Caravan Park in Ayrshire. 

The deal process for all these assets were lengthy, reflecting what happened elsewhere in the market and showing that the transactional process for sale and purchases is still protracted compared to pre-Covid averages. They also demonstrate that there has been positive activity in the Scottish market, particularly from opportunistic buyers and those with trade experience looking to expand their portfolios. 

There are, nevertheless, continued operational challenges. The cost-of-living crisis continues to deter many from making a lodge or caravan purchase, and holiday bookings being made much later is making forecasting quite problematic. It’s, perhaps, unsurprising then that profit margins have come under pressure. 

Golf courses

The last five years have been kinder to golf than many other sports. Golf was one of the only social leisure activities allowed during the pandemic, which led to a rise in participation numbers as many lapsed players returned and active players increased the number of times they played.

Industry figures paint a robust picture. Golf courses across the UK collect a combined £1.6 billion in annual membership fees, while 2.6 million used a driving range, 3.7 million played pitch and putt, and 6.8 million visited ‘adventure’ golf facilities in the past 12 months. Estimates suggest the sector generates revenues of £582 million for the Scottish economy.

While those trends have softened over the last year, membership numbers and retention rates remain positive – from 2025, overall revenues for the golfing sector are expected to grow by 1.9%. The market values courses with lifestyle appeal and strong additional income through food and beverage services, and larger clubs tend to command higher valuation multiples because of their commercial viability. 

Day visitor attractions

The pandemic may have put a brake on many visitor attractions between 2020 and 2022, but since then they have proven very popular. The sector consists of a myriad of different sub-sectors, with more than 6,5000 highly specialised properties across the UK including theme parks, piers, amusement arcades, National Trust sites, and indoor sports activities. 

While traditional visitor attractions continue to trade well, supported by the strength of Scotland’s growing tourist economy, more niche offers are proving increasingly popular. A prime example of that trend is the inland surf resort near Ratho on the outskirts of Edinburgh, for which we advised on the funding. 

Supported by a more diverse range of assets – whether it is wakeboarding parks, climbing walls, or mountain bike centres – we expect visitor attractions to continue to grow in popularity, particularly where they have a unique offering and a strong captive market. 

Marinas

Like the golfing sector, marinas also demonstrated resilience during the pandemic, as one of the few areas that could still operate with limited disruption. There are more than 120 marinas in Scotland, making a significant contribution to the economy. 

The sector is still buoyant after sales surged after lockdowns. In fact, there was such a surge in demand for boats, that many brokers reported depleted stock levels for everything but their most undesirable stock. While sales slowed in secondary services, structurally the core moorings business has been largely unaffected and continues to deliver growth.

Not only are the barriers to entry high, with few or no new marinas built in recent years, but so too are the barriers to exit – boat owners need to house their boats somewhere secure and the social aspect of being a member of a marina can’t be underestimated. As such, they are likely to remain a strong investment opportunity for the foreseeable future, with little in the way of income attrition.

William Rankine is partner, hotel & specialist leisure valuation & advisory at Knight Frank Scotland