For several years, much of the conversation around hospitality has centred on rising costs, recruitment challenges, energy prices and margin pressure.
Those challenges haven’t disappeared. The British Beer and Pub Association reported 295 permanent pub closures between January and September this year, with 360 projected by year end. Ingredient costs are up 78% or more in some areas . The sector has lost around 100,000 jobs over the past two years .
But something interesting is happening.
The conversations we’re having with hospitality business owners are changing. More operators are looking beyond simply surviving. They’re asking how they can strengthen their businesses for the long term – and one question keeps coming up more frequently: should we still be renting our premises?
Many pub operators, restaurateurs, hotel owners and leisure businesses have spent years – sometimes decades – paying rent on properties they’ve successfully traded from. With greater lender appetite returning to the market (semi-commercial mortgage advances increased 14% year-on-year in Q3 2026 ) and businesses becoming more established, we’re seeing more explore whether owning their premises could make commercial sense.
The conversations often start with straightforward questions:
How much equity have we actually built in the business?
Could our monthly mortgage payments be comparable to rent – or potentially less over the medium term?
Would ownership provide greater security and control over our future?
Can we create a long-term asset for the business and the family?
For many operators, owning the property provides benefits that go well beyond the immediate financials. It can create stability, protect against future rental increases, offer opportunities for future expansion and, importantly, build value in an asset that sits alongside – and often outlasts – the trading business. We have had lots of enquiries and some going through with various lenders.
We’re also seeing hospitality operators becoming more acquisitive. Some are considering second sites. Others are looking at acquiring freeholds where they currently lease. Some are expanding into complementary businesses – guest accommodation, event venues, mixed-use premises. After Steve and I went to Bristol a few months back, I read about Harbour Hotels’ acquisition of Brooks Guesthouse – a good example of this type of strategic expansion
Not all of them will proceed – or should. But the fact they’re asking is significant.
Access to funding remains one of the biggest challenges. Well, not just access.
Understanding what’s actually available. The British Business Bank’s £6.5 billion uplift to the Growth Guarantee Scheme , confirmed in July, is expected to help an estimated 33,000 more businesses access finance – yet many operators still don’t know they qualify.
That’s where good advice makes a real difference.
Sometimes it’s about finding finance. But often the most valuable conversations are about understanding whether the opportunity makes sense in the first place – evaluating whether the numbers stack up, whether the timing is right and helping business owners decide whether now is the moment to act. Sometimes the answer is no. At least not yet.
After several difficult years, it’s encouraging to see more hospitality businesses thinking about growth opportunities again. The question of premises ownership – whether that’s acquiring your current site, expanding to a second location or consolidating multiple leases – represents one of the most significant strategic decisions an operator can make.
And for many, that decision starts with a simple question:
Should we still be renting our premises, or is it finally time to own them?
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