Potential bidders for the Butlin’s chain of holiday camps have reportedly balked at a hefty £700m price tag floated by its owner Blackstone, as the private equity giant looks to spin off the chain.
Blackstone is looking to sell Butlin’s as it reshapes its Bourne leisure parks arm, which also operates Haven and Warner Leisure Hotels. Rothschild has been called in to handle a sale and has been sounding out potential buyers in London, The Sunday Times first reported.
But one potential private equity buyer told the Sunday Times that they were shocked by the £700m price of the chain which consists of only three sites at Minehead, Skegness and Bognor Regis.
Butlin’s has been offering guidance that it generates £65m profits and justifies the weighty price tag, the source said.
The chain will reportedly require significant investment to modernise its three camps however, which one potential buyer claims has not been factored into the price.
Sources at Blackstone said they do not recognise the Butlin’s numbers and there was as yet no price expectation. Butlin’s would also be sold in auction so the price would be whatever the bidders were willing to pay.
A staycation boom brought on by covid has heightened the appeal of UK tourism for investors.
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