Nightclubs

The nightclub sector is mostly comprised of independently-owned or smaller multiple operators, with a limited amount of corporate ownership. 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 as a result of changing social trends.

Nightclubs were, along with other areas of hospitality, particularly impacted by the COVID-19 pandemic. Nightclubs were ordered to close on 20 March 2020 and in England were not allowed to reopen until 19 July 2021 (there were further restrictions across the rest of the UK as the devolved governments adopted different and largely more restrictive policies).   

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