Neos Hospitality secures £25m to launch two new party bar concepts

One of the UK’s largest bar and nightclub operators has secured £25m funding with plans to launch two new party bar concepts.

Neos Hospitality, which split from Denmark’s Rekom group earlier this year, runs 23 sites across the UK and employs 900 staff.

Its new brands include Bonnie Rogue’s Pub, which is described as a “live and loud atmospheric party pub”, while Barbara’s Bier Haus will be an après ski-themed bar.

Neos has secured £25m in fresh capital to allow the business to target acquisitions in prime city centre locations across the UK. The group said it was prioritising Birmingham, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester and Newcastle.

It follows a difficult period for the late-night sector, which has struggled with rising costs and a drop in trade since the pandemic.

In February, over 400 jobs were lost when Rekom UK closed 17 UK nightclubs, including sites under the Pryzm and Atik brands.

Neos chief executive officer Russell Quelch said the brand’s party bars had delivered 12% revenue growth this year due to their extended trading hours and wide customer base.

“This strong performance has given us the confidence to invest in the new concepts and grow our business over the coming months and years,” said Quelch.

“We are focused on the next stage of our strategic plan to double the party bar portfolio by the end of 2025.”

Neos said it was close to making an acquisition and planned to rebrand some of its existing portfolio to the new concepts.

Quelch added: “We are confident that we have the winning formula to create seriously good fun spaces for people of all ages to eat, drink, dance, play and watch sport.

“Investing in our party bar concepts now will lay a solid foundation for the future growth of the business.”