Thirst for pub acquisitions slaked by economic and social impact of Covid

There was virtually zero purchase interest in rural pubs last year with 'no notable sales' recorded in Cork, Galway, Limerick, Waterford or Kilkenny

Only six of the eight Dublin pub deals on which contracts were signed in the early part of last year, before Covid struck the country in March, had completed by the end of 2020. Picture: Brian Lawless/PA

The number of pubs changing ownership fell for the sixth year in a row in 2020, with the economic and social disruption caused by Covid slaking the thirst for purchases, particularly outside of Dublin.

There were a total of 13 pub transactions last year, according to figures from Lisney subsidiary Morrissey’s. 

This was down from 16 in 2019, 17 in 2018 and 31 just three years earlier in 2017.

Virtually all activity took place in Dublin, with 30% of transactions fetching purchase prices of over €4m. 

However, the impact of the Covid crisis was visible, with some sales being protracted and deal closing dates delayed.

Only six of the eight Dublin pub deals on which contracts were signed in the early part of last year, before Covid struck the country in March, had completed by the end of 2020.

Outside of Dublin, there was virtually zero purchase interest in rural pubs last year. Morrissey’s said there were “no notable sales” recorded in Cork, Galway, Limerick, Waterford or Kilkenny.

The volume of transactions is expected to remain low during the first half of this year, but demand is still there to some extent.

“Sentiment within the market remains positive and most operators are viewing the current crisis as a short-term issue, and are remaining confident,” said Tony Morrissey, director of licence and leisure at Lisney.

“This sentiment indicates that once normalised lending activity resumes, supply of opportunities to the market should return and healthy levels of both trade and transactions can then occur,” he said.

Lisney/Morrissey’s said the defining characteristic of pub deals last year was the emergence of private equity investment. 

Acquisitions for alternative use also accounted for 33% of the total market value last year.