The local pub market continues to look positive as many office based corporate workers have the option to work from home on a more frequent basis.

So says Stuart Drysdale, director of Drysdale & Company, Scotland’s first specialist commercial property agency for the hospitality sector which launched at the start of 2021 as the country faced its second prolonged lockdown.

“Operators of good pubs with a quality food provision are looking for local destinations outwith the city centres, where they may continue to have a presence, but then supplement trade with businesses closer to residential areas,” added Mr Drysdale who, despite the continuing effects of Covid19 on the economy, has experienced a strong first year of trading in the business. 

“The Scottish hospitality industry has never been short on innovation, coupled with new ideas, and whilst we find ourselves navigating a tricky period in the continued pandemic, there will always be opportunities to look at,” he said.

Launched with the belief that it had a unique proposition for the hospitality sector, Drysdale & Company is a collaboration between experienced commercial property expert, Stuart Drysdale (MRICS), and Alex McKie, managing sirector of the Fusion Group, which owns and runs numerous successful hospitality businesses across Scotland.

Multiple instructions from Hotels to find fresh buyers for premium properties, including the iconic Lake of Menteith Hotel and Poppies in Callander, have combined with referrals from the agency’s extensive network of professional advisors and business owners. 

Following the extremely high levels of interest in the leasehold opportunity at Lake of Menteith, Drysdale & Company has now concluded this deal, whilst it’s also been busy successfully disposing of a 20-bedroom hotel in Edinburgh city centre to an International investor.

Drysdale & Company sold Sheddens Inn in Glasgow, a traditional lock-up pub, to an experienced multiple operator in the summer of 2021, and took offers for Jeanie Deans, a wet-led pub in Edinburgh due to open in its new format in January 2022. Bolstering these moves was the appointment of Brian Davidson, who was made a non-executive director of the Fusion Group earlier this year. 

Whilst a separate company in its own right, Fusion also runs a meetings & events company, with the two businesses supporting one another in contacts and shared experience.

The latest pub to hit the agency’s books, The Cross Keys in Alva, has offers in after only a week of marketing, presenting an excellent opportunity for a tenant to re-establish the unit.

Mr Drysdale said he believed the self-catering sector would continue to be strong this year “with the continued uncertainty in the travel sector most probably leading to high levels of staycations throughout Scotland. Banks and commercial lenders will also probably look to fund purchases in this sector more readily than the full service hotel model.”

He added: “It’s certainly been a rollercoaster of a first year for us, but we are very fortunate to have been busy throughout, and to have hit the ground running with a fantastic network of contacts and support which has helped us achieve our objectives. We hope to be able to help many more hospitality businesses in 2022 as our sector is far from out of the woods. There are always opportunities if you access the right assistance.”

He stressed the importance of hospitality firms “understanding the value of their businesses.”

“We can provide quick, confidential and realistic advice, and in many cases will have a book of buyers who may be interested without having to go to the open market,” he said.

He backed this up by stating that he was frequently being asked to search for off-market opportunities for established, experienced operators, adding that three opportunities were already on the horizon for 2022.

“We’re going to be selling a luxury lodge site in the North East of Scotland, coming to market early in the year, along with a mixed use hotel and lodge development site on the West Coast” he said.

“There’s also an established hospitality business for sale off market with profits close to £2m. We’ve had numerous other high quality confidential instructions in the Borders and Perthshire, with asking prices from £800k to £4m, so the market is definitely picking up.

“We hope to keep up 2021’s momentum and build on it with even higher profile clients.” 

Commenting on the first anniversary of Drysdale & Company, Mr McKie added: “My congratulations go to Stuart on a first trading year which has quickly seen Drysdale & Company become a one stop shop for hospitality businesses of all sizes looking to sell, or consider other practical solutions.

“It’s a professional, welcoming, and trusted source of advice in the industry with so much more to achieve in the coming years.”

Drysdale & Company gives hospitality businesses the opportunity to present themselves to market in the best possible way, with the agency accessing top quality photography & videography, together with multiple add-ons such as 3D walk throughs, property condition reports, and full compliance checking to increase the speed and efficiency of a business transaction.

Asset disposal is only one of the different solutions and pathways offered, with the agency also able to advise on and implement potential management services, accommodation booking services, and joint ventures & leasing, all designed to boost revenue and improve an operator’s profit margin.  

“Ultimately, this can mean that perhaps a business does not need to sell up at all, or if they do, they will achieve a much better price,” said Mr Drysdale.

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