Despite the climatic variability of the British summer, the UK staycation has continued to attract investors, developers and operators. And North American investment giants Blackstone and Brookfield have been leading investment in the great British holiday.
While much of the investment focus continues to be on the hotel sector, leisure parks have largely maintained their momentum since the pandemic boosted staycations, leading Brookfield-owned Center Parcs to announce recently plans for a new resort in the Scottish Borders. Center Parcs UK, which was acquired in 2015, has committed to building a seventh UK and Ireland resort on a 500-acre site near West Calder. The scheme promises hundreds of woodland lodges, a subtropical swimming complex, spa facilities and outdoor adventure areas.
It represents a substantial long-term bet on domestic tourism in a region that has traditionally seen less international traffic than the Highlands or the Lake District. Local authorities have heralded the plan, but the wider implication is that Brookfield believes families will continue to seek out close-to-home, nature-based holidays for years to come.
Center Parcs recently revealed that UK earnings before interest, depreciation, taxes and amortisation rose 7.5% to £60.5 million in the quarter to 17 July from revenue of £147 million, up 8.3% on the same period last year. Occupancy of its five UK villages was 98.5%, up from 97.4% in the same period in 2024. Its average daily rate rose 6.7% to £233 and lodge RevPAR 7.8%. The company values its property at £1.5 billion.
Brookfield has mooted selling the business for years after acquiring Center Parcs through one of its opportunity funds for £2.4 billion in 2015. A £4 billion attempted sale in 2023 was derailed by a rise in interest rates.
Blackstone refinances Haven business
Blackstone’s manoeuvre is different in form but similar in intent. The private equity giant, which owns Haven through its parent Bourne Leisure business – which it bought for £3 billion in 2021 and included Haven, Butlin's and Warner Hotels – recently refinanced the portfolio after several years of rising valuations.
In September 2022, Blackstone sold Butlin’s back to the Harris Family Trusts, one of the original founding families of Bourne Leisure, in a deal valued at approximately £300 million. This only covered the operating business, not the property assets, which it sold separately to private pension fund Universities Superannuation Scheme, also for around £300 million.
In August this year Blackstone completed a £2.9 billion debt package for its Haven holiday parks business, implying a huge boost to the value of the company since its 2021 acquisition to around £3.9 billion, plus it has already collected £600 million from the Butlin’s sale.
The new debt package included a £1.5 billion securitised loan, another loan of £974 million and a £339 million capital expenditure loan, making it the largest UK commercial mortgage-backed securities sale since the global financial crisis.
Refinancing rather than selling outright suggests Blackstone sees further upside, and debt markets have clearly proven willing to extend huge loans to the sector.
Challenges remain for holiday parks
Cost pressures have made a week at a British holiday park or lodge an attractive alternative to European destinations and Haven has invested heavily in upgrading parks, adding glamping options, refurbishing caravans and developing on-site dining.
This spring four new J D Wetherspoon pubs opened at Haven’s holiday parks in a £6.7 million investment in the expansion of the new pubs as part of a broader £8.3 million investment in enhancing the holiday park operator’s F&B offering, following a wider £100 million investment in Haven’s parks across 2024 and £140 million pledged for this year.
A shift in perception has been vital, drawing younger families and professionals who might once have overlooked domestic breaks, while sustainability initiatives have further helped widen their appeal and cut costs.
“These [ESG initiatives] can make a property more efficient, profitable and consequently marketable and cost reductions can have a direct impact on value. The introduction of initiatives such as a combined heat and power plant, solar panels or the Smart Export Guarantee where renewable energy is sold back to the grid, can positively impact EBITDA through control and reduction of variable costs which can lead to improved capital values,” CBRE Operational Real Estate Director, UK Valuation & Advisory Services Julian Such said.
But there are challenges. The cost-of-living crisis has tightened disposable incomes, and operators must balance value with the investments required to keep parks attractive. Weather is another factor — no operator can control a damp and dismal British summer.
While summer 2025 provided a welcome and literal ray of sunshine, bookings were down at the start of the year because of a damp squib of a summer in 2024. As a result, many operators have been looking to extend seasonality, such as Christmas opening, and at fractional ownership.
“Exploring new revenue streams, such as long-term rentals and year-round attractions, can diversify and reduce risk. A focus on digital efficiencies can also reduce costs,” Grant Thornton Partner Chris Potts said. “But many operators are facing significant financial stress, with some on the brink of insolvency. There’s an increasing trend of operators seeking financial restructuring or external investment to stabilise their operations.”
Leisure park market resilient
Yet the sector has proven resilient and Brookfield and Blackstone’s willingness to double down on UK holiday assets suggests the market has moved beyond a short-term Covid bounce. Comparable activity abroad provides a parallel. In continental Europe, French operator Pierre & Vacances has also reported stronger domestic demand, while in the U.S., companies like Kampgrounds of America have seen record growth.
The impulse to stay local and embrace the outdoors appears to have tapped into wider lifestyle shifts rather than temporary necessity.
“The golden goose in the market is the touring caravan park that can be converted to residential use, though these opportunities are rare and highly prized. Interestingly, lodge developments are currently at the bottom of buyers' shopping lists, reflecting a shift in market dynamics. There are plenty of buyers for the right park, although many bargain hunters are finding themselves priced out of the market,” Savills Director Leisure and Trading Richard Prestwich added.
Wellness spas, adventure sports, sustainability credentials, and strong food and beverage offerings are becoming integral. Brookfield’s planned Borders site reflects this, with designs that integrate nature conservation and family-friendly facilities. Haven’s refurbishments and diversification show a similar understanding. For the staycation to endure, sites need to feel like a progressive choice rather than a compromise.