Hospitality rent collection rises after June quarter day

27 July 2021 by
Hospitality rent collection rises after June quarter day

The number of hospitality businesses paying rent has risen in the three weeks following the June quarter day, according to property agency Colliers.

Some 20% of leisure operators paid rent on 24 June, rising to 41% in the 21 days following.

The restaurant sector saw collection levels rise from 25% to 35% over the same period while the amount of rent collected from cafés rose from 15% to 53%.

Mark Jarrett, head of property management of Colliers, said: "Although leisure has had a bumpy ride, these figures really feel like the start of recovery in earnest."

The hospitality industry has accrued around £2.5b in rent debt since the start of the pandemic last year, with repayments posing a major roadblock to the sector's recovery.

The ban on commercial evictions has been extended until March 2022, but UKHospitality chief executive Kate Nicholls has called on government to provide a code of practice to guide negotiations between landlords and operators.

One in five landlords are still unwilling to negotiate on repayments, Nicholls told MPs earlier this month.

Only 10% of hospitality businesses were able to pay rent in full throughout the pandemic and 25% have been making partial payments, though Nicholls said this had been a struggle and led to many taking on more debt.

She said around 49% of hospitality businesses had now reached an agreement with landlords, with some writing off debt or extending time to pay, while 22% are still in negotiations.

Ross Kirton, head of UK leisure agency at Colliers, said he expected the level of rent repayments to continue to increase with the relaxation of coronavirus rules.

"As long as there are no additional restrictions imposed, levels of collection should continue to rise as we go through the next quarter, boosted by the summer trading period and a return to the office, and thus city centres, for many," he said.

Image: Michael Moloney / Shutterstock

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