The UK’s staycation market continues to draw significant investment attention despite variable weather conditions and economic pressures. North American firms Brookfield and Blackstone remain among the most active investors in the sector, underscoring confidence in the long-term appeal of domestic holiday parks.
Brookfield-owned Center Parcs recently confirmed plans for a new resort in the Scottish Borders, marking its seventh location in the UK and Ireland.
The resort, to be developed on a 500-acre site near West Calder, will include hundreds of woodland lodges, a subtropical swimming complex, spa facilities, and outdoor adventure areas.
Local authorities have welcomed the proposal, which reflects the ongoing belief that families will continue to seek nature-based, close-to-home holiday options.
Financial results from Center Parcs also highlight strong operational performance. In the quarter ending July 17, the company reported UK earnings before interest, depreciation, taxes, and amortization of £60.5 million, a 7.5% increase compared to the previous year.
Revenue rose 8.3% to £147 million, occupancy across its five UK villages reached 98.5%, and the average daily rate climbed 6.7% to £233. The company’s property portfolio is currently valued at £1.5 billion.
Meanwhile, Blackstone has moved to refinance its Haven holiday parks business, according to a report by Hospitality Investor. The company, which acquired Haven as part of the £3 billion Bourne Leisure purchase in 2021, completed a £2.9 billion debt package in August.
The financing, which included a £1.5 billion securitized loan, marked the largest UK commercial mortgage-backed securities sale since the global financial crisis. Blackstone’s approach suggests continued confidence in future growth, particularly following its partial exit from Butlin’s in 2022.
Operators continue to adapt their offerings to meet shifting consumer expectations. Haven has invested in site upgrades, added glamping options, refurbished caravans, and expanded food and beverage services.
In spring 2025, four J D Wetherspoon pubs opened at Haven parks as part of a £6.7 million initiative within a wider £8.3 million dining investment, complementing £100 million in capital upgrades during 2024 and £140 million planned for this year.
Sustainability measures are increasingly shaping development and operations across the sector.
“These [ESG initiatives] can make a property more efficient, profitable, and consequently marketable, and cost reductions can have a direct impact on value,” said CBRE Operational Real Estate Director, UK Valuation & Advisory Services Julian Such.
“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.”
Despite strong results, operators face pressures from rising costs, fluctuating disposable incomes, and unpredictable weather.
Following a wet summer in 2024, bookings slowed at the beginning of this year. As a response, many businesses are exploring extended seasons and alternative revenue streams, including year-round attractions and 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 stabilize their operations.”
Industry observers note that consumer demand for local, outdoor experiences is holding steady. International parallels point to a similar trend, with France’s Pierre & Vacances and U.S.-based Kampgrounds of America both reporting stronger domestic travel.
For operators in the UK, amenities such as wellness facilities, adventure activities, sustainability initiatives, and upgraded dining are becoming important factors in maintaining competitiveness.
