One of Britain's most famous seaside landmarks, Brighton's historic Palace Pier, has been officially put up for sale. The move comes after the attraction's owner, the Brighton Pier Group (BPG), reported a significant decline in visitor numbers, falling profits, and a sharp rise in operational costs.
A National Treasure Seeks New Custodian
The leisure group announced it hopes to secure a new owner for the 126-year-old, Grade II-listed structure by the summer of 2024. Anne Ackord, Chief Executive of BPG, framed the sale as a pivotal moment, stating it is "an opportunity to become part of the next chapter in a remarkable story and shape the future of this national treasure."
The pier, which first opened in 1899 after three years of construction, is a fixture of British popular culture, having featured in films like Brighton Rock and Quadrophenia. BPG, chaired by entrepreneur Luke Johnson, acquired the pier for £18 million in 2016.
Financial Pressures Force Strategic Shift
Despite attracting over 4 million visitors annually, the pier's financial performance has deteriorated. BPG's accounts reveal a challenging few years, with Ackord citing "very difficult trading" in 2023 and noting that costs have surged by approximately 50% recently.
The financial strain is clear in the numbers:
- Like-for-like sales fell by 4% in 2024.
- Annual profits plummeted from £1.7 million to just £300,000.
- The net book value of the pier's structure dropped to £13.7 million in 2024, down from £17.3 million the previous year.
The company blamed consecutive years of poor summer weather and wider cost-of-living pressures, which have led consumers to cut back on discretionary spending. In response, BPG introduced a £1 admission fee for non-residents in 2024, later doubling it to £2 in March 2024, a move it said partially offset the visitor decline.
Sale Process and Future Prospects
BPG, which delisted from the AIM market last year, has appointed the estate agent Knight Frank to handle the sale. No official guide price has been set, but interest is anticipated from both UK and international buyers.
Ackord emphasised that the pier remains a "profitable, stand-alone business with significant potential". The sale forms part of BPG's broader strategy to divest its leisure assets, which also includes the marketing of its Lightwater Valley theme park in North Yorkshire for £3 million, and return capital to shareholders.
The future of the 540-metre-long pier now rests on finding a buyer willing to invest in its next chapter, preserving its heritage while navigating the modern challenges of the hospitality and tourism sector.
