Private equity group CVC Capital Partners has paid £ 250million for a controlling stake in UK holiday park operator Away Resorts in a bid to capitalize on the boom in national holidays.

Carl Castledine, founder and chief executive of Away Resorts, said on Monday that CVC moved quickly to take control of the business after buyout company Freshstream, its current owners, began exploring a sale.

“It’s only been a few weeks actually,” Castledine added.

CVC has invested £ 250million in the business, roughly four times Freshstream’s investment in 2019, sources familiar with the negotiations said.

With restrictions on international travel outside the UK lasting much longer than many in the tourism industry had anticipated, domestic operators have benefited from an increase in inquiries from holidaymakers seeking vacations. It has also resulted in increased investor interest, especially from private equity groups.

Demand has been so high for spaces at the nine Away Resorts locations over the summer that Castledine said “we’re going to have something like 20 consecutive Easter”, adding that this year would be “way over. 2019 in terms of demand “. The company, which was founded in 2008, also had no need to give discounts to tempt consumers, meaning prices remained high, he said.

CVC, which recently agreed to take a stake in the Six Nations rugby tournament and is in talks to form a global tennis group, said that Way Resorts was “well positioned in a fragmented and growing market that benefits from strong favorable winds of consumption “.

In January, Butlin owner Bourne Leisure was acquired by US private equity giant Blackstone in a deal valuing the company at around £ 3 billion. Two other UK holiday park operators, Park Holidays and Verdant Leisure, have also been put up for sale, according to Sky News.

Nick Varney, managing director of Legoland owner Merlin Entertainments, said the group is “investing heavily” in short-term break capacity.

The UK government has restricted international travel due to an increase in the Delta variant of Covid-19, forcing UK holidaymakers to seek vacations closer to home. Only 11 countries are considered safe for UK travelers to visit without having to quarantine, though none are major holiday destinations.

Caravan trader Robinsons Caravans said on Monday there had been a “dramatic increase” in the number of consumers purchasing first-time caravans, with sales up nearly 50% over the year to date. day compared to the same period in 2020.

Jarrod Clay, Managing Director of Robinsons, said it was a “banner year” for the company and that she “saw a huge increase in the number of people under 40 buying their first trailers” , many of whom spent over £ 30,000.

Castledine said that Away Resorts, which bought three more parks since the end of last year, was struggling to build enough vacation homes to meet demand due to understaffing and rising prices. raw materials such as galvanized steel and concrete.

Its park in St Ives, Cornwall is nearly full for the rest of the year, although Castledine said there are still midweek spots at his other parks over the next few months.

Rothschild & Co advised Freshstream on the sale, which is expected to close later this year.