5 fleurets.com However, it remains unclear as to whether the worst is over for this sector of the leisure property market. The issues of rising costs in relation to food supplies, business rates, rent and labour remains as prevalent now as they did 12 months ago. The issue of labour supply is likely to become the most concerning of these issues in the year ahead as net migration to the UK from other EU countries continues to fall. As a result, this may lead to wage growth as operators throughout the leisure sector find securing good quality candidates more challenging. The property market itself has experienced a comparatively buoyant and healthy period, with notable transactions across the pub, restaurant and hotel sectors; The Restaurant Group (TRG) being particularly active, picking up Food and Fuel (11 leaseholds in London) for £14.9m, quickly followed by the agreement to purchase Wagamama (133 restaurants in the UK, plus 63 worldwide) for £357m in cash, in addition to the existing debt of £202m. The acquisition of Costa by Coca Cola, however, stole most of the headlines and numerous column inches. Whether the deal means we will see Costa explode across the globe is unclear, but a more direct consequence is likely to be further investment and growth of Premier Inn as Whitbread use some of the disposal proceeds towards accelerating investment in the hotel brand. The months and year ahead is likely to be both challenging and exciting for leisure property owners and operators alike but, as ever, I am optimistic that the conditions are right in the sector for success. Stonegate