Nightclubs

The nightclub sector is mostly comprised of independently owned or smaller multiple operators, with a limited amount of corporate ownership. The number of nightclubs operated by corporate operators has generally been diminishing for some time. Nightclubs can be subdivided into a number of categories:

• super clubs
• mid-sized clubs
• small clubs and
• chameleon clubs.

In recent years the nightclub sector has not only been adversely affected by the changes in the licensing regime but has also suffered due to changing social trends, accelerated by the COVID-19 pandemic and increase in operating costs principally in energy and staffing.

Licensed premises, including nightclubs, are generally bought and sold by reference to their trading potential as the motive of the operator and purchaser is to trade from the premises to realise its profit potential. Consequently, valuers compare and value premises on a trading/profit-related basis.

This section is maintained by Stephen Owens of Christie and Co.

RICS standards: Red Book VPGA 4 Valuation of individual trade related properties

Template: Nightclub valuation checklist