A UK holiday homes lettings business has unveiled plans to float on London’s AIM market, in a move that could value it at around £350 million as investors tap into the staycation boom.
Travel Chapter, which manages over 8000 properties on behalf of landlords and is behind the holidaycottages.co.uk brand, said the self-catering market has recorded long term growth. It expects further consumer demand ahead.
It pointed to its customer database surging to 1.1 million people in August, from 735,000 in May 2019. International travel restrictions during the Covid-19 crisis have prompted thousands of people to enjoy seaside and countryside breaks in the UK instead.
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Travel Chapter said management attribute some of its database strength to “a new demographic of customer that has entered the UK holiday rental market for the first-time during the pandemic, in particular younger and more affluent customers”.
The company, which is headquartered in Devon and employs 400 people, is working with GCA Altium and Numis on the IPO. It intends to start trading on London’s junior market in November.
Travel Chapter was founded in 1989 and is now owned by private equity group ECI Partners and management.
The firm thinks there is more scope for growth, as well as looking at other stays that could complement the main business, such as camping and glamping.
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Chief executive Jayne McClure said: “We have witnessed long term and robust structural tailwinds in domestic tourism in the UK and believe that these are set to continue.”
Budget hotels group Travelodge said it estimates collectively families are set to boost the UK economy by £4.5 billion holidaying on British shores during the next two weeks.
That period covers Halloween and half term for many schools.
Travelodge said the average autumn family staycation is going to be for around four days and cost on average £363.83 for the trip and parents are set to spend a further £131.68 on entertaining their children during their holiday.
By Joanna Bourke
Source: Evening Standard