West End hospitality sales show strong recovery, says Shaftesbury

The landlord has reported a sustained recovery in confidence and activity driving growing footfall and spending ahead of 2019 levels.

Average monthly sales at its tenants are now 6% ahead of pre-pandemic levels, with sales in hospitality and leisure businesses having also risen by 6%.

A strong demand for space across all uses has led to a return to pre-Covid occupancy levels and growth in rental values, says Shaftesbury. During the year there were 59 new hospitality and retail lettings, with rent collection of 99%, back to pre-pandemic levels.

Cash generated from operating activities was up 61.4% to £61.8m following the cessation of Covid-rent support and improvements in rent collections and occupancy.

“The year has seen a rapid rebound in the West End economy as Covid-related disruption receded and patterns of everyday activity returned to pre-pandemic normality,” says Shaftesbury chief executive Brian Bickell.

“The sustained recovery in footfall and trading since the early months of 2022 has been matched by the strength of occupier demand in our carefully curated and popular locations.”

Shaftesbury adds that the prospects for London and the West End remain bright, despite the current challenging climate.

“Although London and the West End cannot be immune from the unprecedented range of challenges which are now dominating the national outlook, their long-term prospects remain bright, thanks to their enduring appeal to global, domestic and local visitors, businesses and investors, their dynamic economies and ability to attract talent and creativity from across the world,” says Bickell.

“These features are mirrored in the locations in which we invest and, together with our proven, innovative management strategy and our experienced and enthusiastic team, reinforce our confidence in the long-term potential of our exceptional portfolio.”