The £1.4bn deal for The Ivy Collection, alongside Annabel’s, Scott’s and the wider Richard Caring estate, is more than just a transaction, it is a marker of where the hospitality sector now sits in the eyes of global capital.
For years, restaurants were valued as operational businesses - judged on site performance, margins and covenant strength. That lens is shifting. The very best operators are no longer being priced as restaurants; they are being priced as brands. More specifically, as scalable, exportable luxury platforms.
This is why the identity of the buyer matters as much as the valuation. Investors with deep pockets and a global outlook are not acquiring these businesses for incremental yield. They are acquiring brand equity, customer loyalty and the ability to take a concept beyond a single city or even a single format. The fact that Diafa already has exposure to names such as Zuma and Roka underlines that this is a continuation of a clear strategy rather than a one-off move.
Restaurants are no longer just occupiers of space, they are becoming the defining feature of it
At the same time, we are seeing similar thinking play out elsewhere. The Wolseley Hospitality Group is pushing further into hotels and mixed-use environments, taking what were once standalone restaurant concepts and embedding them into broader hospitality ecosystems. The direction of travel is obvious: restaurants are no longer just occupiers of space, they are becoming the defining feature of it.
Overlay this with reported transactions being struck at 16-18 times EBITDA - and in some cases beyond - and it becomes clear that the market is placing a premium on something far greater than current trading performance. Add in deals such as the sale of Dishoom to LVMH, and a pattern begins to emerge. The world’s most sophisticated investors are targeting hospitality brands in the same way they would fashion houses or luxury hotels.
The implications for the sector are significant. We are moving towards a market that is increasingly polarised. At one end sits scale, value and simplicity - concepts that can roll out quickly and deliver consistency. At the other sits ultra-luxury, experience-led brands that create theatre, scarcity and emotional connection. It is the middle ground that is being squeezed.
What the Caring deal ultimately demonstrates is that the ceiling for this sector is far higher than many might have assumed
And that emotional connection is critical. The brands that are winning today are not simply those that deliver a meal, but those that make you feel something. That might be through design, service, storytelling or simply a sense of occasion. Whatever the mechanism, the outcome is the same: loyalty, pricing power and, ultimately, valuation.
This shift also ties directly into the growing blending of uses across the built environment. Pubs with rooms, restaurants within hotels, members’ clubs with full food and beverage, and increasingly complex mixed-use schemes are all pointing in the same direction. Hospitality is no longer an add-on; it is the anchor. It drives footfall, defines identity and elevates the wider asset.
For landlords, this changes the equation entirely. The question is no longer just who can pay the rent. It is who can enhance the estate. The right operator can transform not just a unit, but an entire scheme, with a direct impact on values and yield. In that sense, the hospitality brand becomes as important as the real estate itself.
What the Caring deal ultimately demonstrates is that the ceiling for this sector is far higher than many might have assumed. These are eye-watering numbers, but they reflect an equally eye-watering reality. When you get it right - when the concept, the brand and the positioning all align - the rewards are no longer incremental.
They are transformational.
Ted Schama is founder of advisory business One Voice Hospitality.