London's Leisure and Licensed Property Market in 2026: Where Is the Real Value Now?
London's market for pubs, restaurants, bars, hotels and entertainment venues is becoming more selective in 2026, with value driven by trading performance and future potential as much as by location.
The article describes a two-speed market. Well-established, profitable venues in central London and strong neighbourhoods still attract buyers and firm values, especially where they have a proven trading record, limited competition and secure long-term occupation. Venues with a strong food and drink offer or a distinctive experience are holding up better than generic operators competing on price. By contrast, older premises with weak trading or high running costs are under pressure, and their value may rest more on refurbishment, repositioning or alternative use.
It cites Colliers' 2026 outlook, which expects further cost pressure on smaller hotels, pubs and restaurants, modest and selective growth, investor focus on the best locations and venues, and increasingly price-sensitive buyers. Even so, London's large population, tourism and established eating and drinking culture continue to underpin demand. Colliers reported a strong start to 2026 for hotel investment, including major London deals, and leisure rental growth rose 0.7% in January 2026, the fifth monthly increase in a row.
For investors, strong operations in prime locations may continue to draw competitive bidding, while struggling premises could suit buyers able to improve the business, cut costs or reposition the property. Planning is becoming a bigger factor too: stronger protections for pubs may make it harder to unlock value through conversion or redevelopment, placing more weight on a venue's ability to trade successfully.
The overall conclusion is one of selective value rather than broad growth or decline, with well-priced assets with sound fundamentals potentially offering some of the more interesting opportunities in London commercial property.
Originally published on The Landsite (21 August 2026)
