Knight Frank has been instructed on the sale of Brighton Palace Pier, two months after the Grade II-listed landmark’s owners revealed their plans to offload the amusement park amid a barrage of economic headwinds.
The Brighton Pier Group appointed the property giant to seek a buyer for the coastal attraction, which its operator said in its latest accounts has been beset by an “extremely challenging trading environment”.
Brighton Pier Group’s sale plans
The pier, one of the UK’s most recognisable leisure destinations, first opened in 1899 and extends over 1,700 feet into the English Channel.
It boasts two arcades, 19 funfair rides, a restaurant and events space, and has acted as the backdrop for several films and television productions.
Its sale is part of a broader push by Brighton Pier Group to offload much of its portfolio. The changes were first disclosed in November, just six months after the group quit the London Stock Exchange in favour of private ownership.
In its first set of accounts as a non-listed company, the group confirmed it was “exploring opportunities for the potential sale of some or all of its remaining assets.
As well as owning the south coast pier, the holding group also operates a chain of mini-golf sites and Yorkshire’s Lightwater Valley Adventure Park.
“The proposed sale of the pier forms part of our strategy to divest our leisure assets and return capital to shareholders. Brighton Palace Pier is a profitable, standalone business with significant potential to build on its already strong popularity,” said Anne Ackord, chief executive of the Brighton Pier Group.
“This is more than just the sale of an asset: it is an opportunity to become part of the next chapter in a remarkable story and shape the future of this national treasure.”
Brighton Palace Pier sale follows ‘persistent trading challenges’
The group’s plan to sell off the leisure attraction comes as the hospitality industry wrestles with a bleak macroeconomic backdrop of stuttering demand and higher costs.
The sector has proven to be among the most exposed to the government’s successive tax-raising budgets, which have disproportionately targeted industries that tend to employ low-paid or part-time staff thanks to large hikes to the living wage.
The £24bn raid on employer National Insurance contributions unveiled in the autumn of 2024 included a near halving of the threshold at which the levy kicks in, leaving industries like hospitality and retail especially affected.
Much of the industry is also up in arms over a business rates shake-up in last year’s Budget, which has left many facing far larger property tax bills, despite ostensibly being handed a 5p cut.
Costs surge
Compounded by stubbornly high electricity bills, Ackord previously said Brighton Pier Group’s costs have risen by 50 per cent in a few years.
Simultaneously, its like-for-like sales fell four per cent in 2024 – the most recent year it has reported – prompting it to double its admission fee to £2 in March.
The group is chaired by Luke Johnson, who is also chair of Gail’s bakery, having previously run both Patisserie Valerie and Pizza Express. It bought the pier for £18m in 2016, before quitting London’s junior exchange Aim nine years later.
At the time, it said it had “carried out a careful review of the benefits and drawbacks” of its Aim listing, and blamed “persistent challenging trading conditions” for its decision to go into private hands.
John Rushby, partner and head of specialist leisure at Knight Frank, said: “Brighton and Hove continues to grow in popularity as one of the UK’s leading destinations.
“Positioned at the heart of the city, Brighton Palace Pier stands out as one of the country’s most significant heritage landmarks, offering a rare opportunity for a new owner to build on its strong foundations and further enhance its position as a premier leisure and hospitality destination. We are proud to be advising The Brighton Pier Group on this landmark sale.”