Dunchurch Park Resort

Executive Summary

The UK holiday and leisure sector is a fast-growing and established industry for investors. With low competition and high returns, you can gain access to a lucrative market that is experiencing sustained growth. Dunchurch simplifies the investment process by offering hands-free investment opportunities and competitive annual returns.

According to CabinBookers UK: “90% of UK holidaymakers are planning to take a domestic holiday once travel restrictions are lifted.” With the current state of global markets such as the impact of COVID-19, Brexit, economic recession, and limitations on international travel the UK tourism industry expects a boom in domestic travel unlike any other in history.

Local holiday providers are recording as much as one booking every 11 seconds, as local travel restrictions are being lifted. With reduced holiday budgets and global uncertainty, travellers are fuelling the demand for UK getaways.

It’s also important to note that UK holidaymakers account for 81% of all domestic travel (much higher than neighbouring countries) and UK booking statistics show that local travel sites are seeing as much as a 455% increase in bookings in comparison to 2019.

Adding to this, holidaymaker statistics tell us that 82% travel to escape the rush of commercial life, 80% of domestic travellers aim to spend more time with family or children, and 58% travel for business.

Dunchurch Resort has been designed specifically for families, couples, and even businesses to rest and relax during their stay. Our lodges are prepared to meet the need of staycations as each individual lodge is made to the highest residential standards.

As a brand, Dunchurch Resort has taken a bland, unbranded, and old-fashioned holiday park and created a unique exclusive high-end boutique hotel experience nestled in a peaceful countryside getaway.

Unlike other property investments such as off-plan apartments or student accommodation, the individual build of each lodge removes the development risk for investors. And rest assured, your deposit will only be used to build your specific lodge.

As an investor, you can expect to see an assured 8% net per annum with fixed annual increases. This return is assumed to grow year on year, projected to reach 10.4% by the 10th year of investment.

Dunchurch Resort manages, maintains, and lets your lodge making sure occupancy is efficient all year round. We offer round-the-clock service and management so that our investors are assured both revenue and occupancy are maximised all year round.

With finance available for both UK and International investors, our prices start at £119,990 for a 250-year leasehold title and full ownership of the lodge. With increasing demand, we anticipate that investment opportunities for Dunchurch Resort will not be available for long.

The Musts

• Secure High Yielding Hands-Free Asset
• Security through a 250 Year Leasehold Title
• Simple and Secure Transaction Overseen By UK Lawyer
• Highly Marketable and Easily Exited
• Industry-Leading AAA Management Company
• Lodges Built to Residential Standard BS3632
• Hand-Built in Factory Controlled Conditions
• Large Decking Area and Hot Tub as Standard
• Fully Furnished and Ready Let
• Huge Undersupplied Demand for Quality Accommodation
• Comfort of Buying into an Exciting and Dynamic Brand
• UK Holiday Park Industry Can Weather Economic Downturn and Prosper

The direct correlation between high occupancy levels and increased operating profits continually drives us to make sure the retreat and your lodge are managed, maintained and let as efficiently as possible all year round.

(All matters referred to in this brochure are for illustration purposes only and all prospective purchasers of lodges should make their own enquiries and the contents of this brochure will not form part of any sales contract.)

Tax Breaks for Furnished Holiday Lets

You can utilise government tax breaks for Furnished Holiday Lets (FHL), which include:

• Claim Back FHL Capital Allowance for up to 100% of the Price of Your Lodge
• Pay No Council Tax
• Split Profits with Your Spouse for Flexible Tax Planning
• Claim Back Allowable Deductions against Income, including:

• Management and Lettings Fees
• Advertising Costs
• Maintenance and Cleaning
• Insurance
• Accountants’ Fees

We highly recommend consulting with a tax specialist on how to fully benefit from the above.

Structured Exit Strategy

There are two main options:

1.       You are free to sell your lodge to anyone at any time for any price.

2.       You are free to sell your lodge to anyone at any time for any price.

Capital Appreciation

As you are buying your lodge on a yield return basis, capital appreciation is determined by the increase in the net rental return your property generates. Your rental income is RPI linked, so the net yield you receive every year increases and therefore so does the commercial value of your lodge.

Mortgages

Mortgages are available to both UK and international buyers through an independent mortgage provider. Please note that all mortgages will be subject to status, and you will be bound by the lenders own terms and conditions. If this is of interest to you we will be happy to put you in contact with them.

Industry Analysis

UK tourism is booming due to numerous factors that have created a sustained surge in staycations, including:

• The COVID-19 Pandemic
• Brexit
• Weakening Pound – Significant Drop in the Value of Sterling
•  Overall Cost Compared to Foreign Holidays
• Convenience of Taking a UK Holiday, Especially for Families with Young Children
• Improved Transport Links
• Improving Standards of Accommodation
• Improving Standards of Activities, Entertainment, and Facilities
• Increased Recognition That the UK is Home to Numerous Areas of Outstanding Natural Beauty
• The Ability to Bring Beloved Pets on Holiday, Increasing Enjoyment, Reducing Stress, and Saving Kennel Costs.

UK Tourism Industry – Facts and Figures

• Britain will have a tourism industry worth more than £257bn by 2025 (VisitBritain)
• In 2018 alone, 74% of all UK adults planned to Staycation Sykes (Staycation Index 2018)
• 38.8 million overseas visitors to the UK projected for 2019 Sykes (Staycation Index 2018)
• UK tourism generates nearly 10% of the nation’s GDP (VisitBritain)
• Tourism generates 3.8 million jobs, 11% of all UK employment (VisitBritain)
• Average annual occupancy level for a UK hotel in 2018 77% (VisitBritain)

Current UK Holiday Parks

Family-Run Businesses

• Usually Small to Mid-Sized Parks, with 10 – 100 Units
• Well-Established Locations
• Poorly Managed
• Dated Lodges with Tired Facilities
• Cash-Flow Issues Mean Parks Require Refurbishment
• User Demographic – Low-Income Guests, Due to Poor Standard of Accommodation
• Struggling to Survive
• Succession Issues as New Generations Do Not Want Pressure of Running the Parks
• Perfectly Suited for Redevelopment into Boutique Lodge Retreats

Large Operators

• Usually Large Parks, with 100 – 1,000 Units
• Focus on Family Holidays
• High-Impact Activities
• Noisy Chaotic Environment
• Large Facilities Hub, including Swimming Pools, Restaurants, and Arcades
• High-Running Costs, Especially in Low Season
• Staffing Issues, Often Transient or Low-Skilled Workers
• Large Institutional Investment Companies Moving into the Marketplace
• Operator/Owners Often Run Multiple Parks

Large Operators

• Owner-Occupiers
• Predominantly Retirement Communities and over-45’s
• Located on the Outskirts of Towns and Cities or Coastal Locations
• Owners Purchase a License to Occupy the Park with Rights to Locate a Park Home on Site
• Owners Annually Charged a Ground Rent and Site Fees over and above the Cost of the License

UK Holiday Park Sector – Facts and Figures

All information below is taken from the recently published independent report "Pitching the Value". It is the first time that holiday parks and campsites across the UK have been analysed to show the enormous value of the sector to the nation’s economy.

• Generates £9.3bn in Visitor Expenditure
• Supports 171,448 Full-Time Employees
• 6,243 Holiday Parks and Campsites throughout the UK
• With a Total Combined 438,076 Pitches
• Diverse Range of Accommodation including Lodges, Chalets, Motor Homes, Caravans, and Glamping
• Helps to Promote Healthy Active Outdoor Lifestyles

Institutional Investment Funds

Institutional investment funds and high net worth family offices have known about the high yields, stable market conditions, and strong profits available in the UK holiday park industry for many years.

Since before Brexit was announced, these institutions have carried out thorough due diligence into the consequences of a potential global economic downturn and searched high and low for where their money will not only be safe from harm but also generate great returns.

The destination on which they have unanimously set their well-researched sights is the UK Holiday Park Sector.

Unsurprisingly, The Financial Times, one of the worlds most respected financial publications, has been singing the praises of UK Holiday Park investments since 2015 and reporting on the large fund acquisitions in the sector:

• Blackstone, the World’s Largest Property Investor, Bought Centre Parcs for £434m (2006)

• Brookfield Capital Bought Centre Parcs from Blackstone for £2.4bn (2015)

• Centre Parcs Europe to Get a £200m Upgrade (2019)

•  Parkdean Resorts Sold for £1.35bn to Canadian Company Onex Private Equity (2016)

• Park Holidays Sold for £362m to Intermediate Capital (2017)

• Large US Hedge Funds Enter the Marketplace (2017 and 2018)

• Traditional Market investor Phoenix Equity Increased Investment (2018 onwards)

• Butlins Owners Are Investing £40m into New Facilities (2019)

We are offering investors direct access into the same stable, high-yielding sector that the world’s most successful institutional funds are piling their money into."

Our Offering

Located in the heart of Warwickshire, the Dunchurch Park Resort provides the perfect staycation destination, with up to 200 next-generation lodges and extensive on-site facilities and activities. Our premium 2- and 3-bedroom luxury holiday lodges are nestled in a peaceful location with unique luscious green landscapes.

All of the Dunchurch lodges have bespoke designs, matching the look and feel of a high-end hotel. With minimalist yet stylish furnishing and an outdoor hot tub, each lodge offers the perfect getaway for rest and relaxation.

Visitors to The Dunchurch will be spoilt for choice with a clubhouse filled with facilities, an on-site restaurant and pub, and stunning views across the local countryside. What’s more, visitors can explore the nearby city of Rugby, only six miles away.

As the highest-rated local retreat in terms of the sheer number of on-site facilities and activities in the surrounding areas, Dunchurch Park Resort provides a highly sought-after investment opportunity.

Events

Research suggests that near 62% of UK adults have taken a holiday specifically for hobby or interest purposes. Adding to this, we know that over 58% of UK adults have travelled solely for business.

That’s why our revolutionary approach to events gives us a unique business model that helps us to easily sustain the rental returns for our investors while maximising business opportunities in each retreat.

Events is a research-based model that will increase year-round occupancy, attract quality visitors, and improve repeat business. With the Events strategy, we aim to reduce any off-season slumps that would have previously impacted bookings.

Despite the UK tourism industry currently being fuelled by local holidaymakers adapting to changes such as COVID-19, Brexit, and global travel restrictions, Events is our road map to increasing occupancy for years to come.

Our leisure strategy uses holiday packages that target special interest holidays such as personal getaways, annual holiday period, and national recurring events.

Leisure holiday packages will provide expert tuition, presentations, and group activities that meet today’s demand for fitness, stress relief, and self-improvement workshops. We will also offer packages linked to events and local festivals based on each site.

Our business strategy targets specific businesses with industry-specific workshops, staged events, and business partnership meetings. The Events business model will support companies to meet collectively or to host larger conferencing events on Lodge sites.

What’s more, our team will provide essential services directly or through partners to provide the 5-star service required to form lasting business partnerships The excellent packages, facilities, and accommodation that Dunchurch Resort provides as part of our offering will allow investors a competitive advantage not yet seen in the industry.

Membership

Membership is our innovative approach to securing bookings in your lodge, which is a simple but effective way of reliably forecasting your annual rental return.

In a market that relies on seasonal consistency, it is only natural that investors want a proven strategy to secure return on investment. Our Membership plan makes your investment a safe choice.

Our offer enables both individuals and corporates to buy accommodation at a reduced, fixed rate well in advance. This membership offer helps visitors to avoid seasonal price hikes while also avoiding inflation over the long term.

To join Membership, guests buy a minimum of 35 nights of holiday to use over a 5-year period. These nights can be used at any point over the term of the membership. As an investor, the five-year duration gives you peace of mind that Dunchurch Resort has secured bookings for this usage many years in advance.

Instead of relying solely on marketing and holiday traffic, Membership makes your investment as safe, secure, and predictable as possible. Membership runs alongside our proven methods of revenue generation through booking portals, and our structured mid-week breaks through Events.

Location

As a design-led company, we take pride in how our retreats look and feel. We truly believe people deserve to holiday in superior accommodation set in beautiful surroundings. That’s why we source and secure sites that our retreat clientele want to visit and reside in.

These locations are rich in the most important experiences, such as scenic views, multiple attractions, nearby local towns and cities and good transport links with easy access. All our sites and holiday lodges are located in areas of natural beauty and offer an experience unrivalled by our competition.

Lodges

All our next generation holiday lodges are designed in-house specifically to cater for the luxury lodge holiday rental market. Each of our luxury lodges is built to the highest residential standard and comes with a 10-year comprehensive warranty.

We firmly believe that luxury lodges should be designed with form, function and purpose in mind. All fixtures and fittings are selected to be hard-wearing and durable. Other features include:

• Visually Striking Design
• Dramatic Lodge Exteriors and Stylish Interiors for a Stunning Aesthetic Experience
• Fully Furnished and Ready to Let
• Large Hot Tub and Decking as Standard
• Disability Access in Specific Lodges
• Comprehensive Warranty, Backed by Our Dunchurch Resort Maintenance Program
• Assured Rental Management Agreement for Interior and Exterior Maintenance

Buyer Security

For our buyers’ security, the purchase process will be overseen by a fully independent UK commercial solicitor.

We guarantee an 8% net rental return for 10 years, with annual rental increases contractually agreed by the developer and supported by a rental reserve fund. During the short period between exchange (deposit payment) and completion (legal ownership), your deposit funds will be fully secured.

Upon completion of the purchase, we will put a contract in place to fully manage and maintain your investment for 10 years. If mutually agreed, we will be happy to roll over the management agreement at the end of this period.

As an experienced holiday park developer and an AAA industry-leading management and lettings company, we cover all insurance, ground rent, service charges, and maintenance during the rental contract. There are also contractual developer buy-back options.

With over 41 million UK adults to market to, (of which 73% confirm they would be holidaying in the UK in 2019) an average UK hotel occupancy rate of 77%, and a high demand for luxury accommodation, high occupancy levels at top market rates is virtually assured.

Purchase Process

• Fully Review and Understand the Purchase Literature
• Select a Luxury Lodge and Pay the £5,000 Non-Refundable Reservation Fee
• Complete and Return Your Reservation Form and Additional Important Documentation
• An Independent UK Solicitor Will Be in Contact to Offer Legal Assistance and Guide You through Your Purchase and Contract Signing
• Exchange Contracts on Your Property and Pay the 50% Deposit to Your Solicitor No Later Than 28 Days from Your Reservation
• Pay the Remaining Purchase Amount in Full to Your Solicitor When Requested and Complete on Your Purchase Shortly After
• Take Leasehold Ownership of Your High-Yielding Luxury Lodge

Social Responsibility

At Dunchurch Park Resort, we believe in creating positive change in the world. Through our own Social Responsibility agenda, we can take part in the global movement towards responsible business practices. Simultaneously, we provide relief from the stressful challenges of daily life for those who need a break.

As a company, we give to receive, and so every year we will be selecting local charities to support. Working with our guests, staff and owners to raise donations to help within the local communities where our retreats are located. We are also partnering with two national charities that are very close to our hearts and allowing our lodge owners the opportunity to donate any of the personal usages per year they receive to these charities.

This generous gift will enable a number of the charity’s members to receive a much needed holiday in the owner’s lodge, helping to relieve the stress of their daily lives if only for a short time. The charities we will be working with are Macmillan Cancer Support and Mind.