It has been reported in 'The Guardian' newspaper that Butlin's could be sold in 2022.
US private equity company Blackstone, which owns the majority of Butlin's parent company, Bourne Leisure, is understood to have started investigations into its sale with leading investment banking groups.
Demand
The 85 year old company has enjoyed a huge increase in demand for holidays at its UK resorts since they re-opened in May this year, as the travel industry continues to struggle with the impact Covid-19 and its latest Omicron variant has had on foreign travel.
The Guardian reports that the decision comes less than a year after a majority stake in Bourne Leisure, which also owns Warner Leisure Hotels and Haven Holidays, was acquired by Blackstone for around £3bn.
Profit and loss
It is believed that both Bourne Leisure and Blackstone have concluded that Butlin's is no longer central to their future objectives and despite Bourne Leisure's accounts for 2020 showing a £151m pre-tax loss, compared with a profit of £145m in 2019, the time is right to sell.