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Birmingham is the second-largest city in the UK, with a population of approximately 1.2 million, while the wider metropolitan area is the UK’s second most populous, with approximately 4.5 million residents. Birmingham is also the ‘youngest city’ in Europe, owing mainly to the large numbers of students attending university in the city.

Birmingham boasts a diverse array of cultural and sporting venues, such as Utilita Arena Birmingham, the O2 Academy, The Alexandra Theatre, and Villa Park, the iconic home of Aston Villa FC, which has a storied tradition of accommodating high-profile sporting occasions. The city made headlines in 2022 by successfully staging the Commonwealth Games, marking the first time England had hosted the event since Manchester welcomed it in 2002. The Games drew a record 1.5 million visitors, cementing Birmingham's place in history as the host of the best-attended Commonwealth Games ever held on UK soil. On the back of this successful event, the city will host the European Athletics Championships at Alexander Stadium from 10-16 August 2026, marking the first time the competition has ever been held in the UK, with more than 50 nations expected to compete and in excess of 80,000 tickets already having been sold in October 2025, ahead of the general sale. Looking further ahead, Birmingham's National Exhibition Centre (NEC) will welcome the Invictus Games from 10-17 July 2027, an event celebrating wounded service members and veterans, which generated more than US$86 million (£64 million) for the local economy in the most recent edition in Vancouver and Whistler.

As the UK's second-largest urban economy, Birmingham occupies a pivotal position within both the West Midlands and the wider national economic landscape. The city has established itself as a key centre for financial services, advanced manufacturing, digital technology, and life sciences. Its long-term growth trajectory is shaped by the 'Big City Plan – Stage 2', a strategy introduced in 2010 that sets out to grow the city centre footprint by 25%, generate upwards of 50,000 jobs, and inject an estimated £2.1 billion into the local economy each year. The presence of the National Exhibition Centre (NEC), among the largest exhibition spaces in the UK, further strengthens Birmingham's appeal as a premier destination for Meetings, Incentives, Conferences and Exhibitions (MICE). The city's events calendar includes several prominent annual fixtures, among them the Spring Fair, the Autumn Fair and the Caravan Show.

Birmingham's hotel market performed steadily in the pre-pandemic period, with occupancy in the mid-70s and rates growing in line with inflation, before COVID-19 caused significant disruption. Recovery was swift thanks to the Commonwealth Games, with 2022 delivering a sharp RevPAR rebound driven by gains in both occupancy and average rate. In real terms, RevPAR already matched, if not slightly improved upon, 2019 levels in 2022. Performance continued to strengthen through 2023 and 2024, with demand returning to historical norms and average rate growth accelerating into 2024 on the back of sustained recovery. Momentum, however, did not carry through into 2025, when occupancy levels and average rates in sterling terms remained broadly stable (with some softening in euro terms owing to currency depreciation).

Birmingham’s hotel pipeline consists of some 2,800 rooms across 19 projects, equivalent to about 13% of the current supply. Most new developments fall into the midscale and upper-midscale segments and will operate independently. Notable upcoming openings include the 146-room Radisson Red Birmingham Edgbaston (August 2027) and the 156-room Murdoch Building & Pitman Chambers (end of 2027).

Hotel transaction activity in Birmingham remained subdued in 2025, with only a few deals recorded, mostly involving limited-service properties. Among these deals, the 75-room Park Point was sold in February 2025 for £11.4 million or £150,000 per key (€180,000 per key) at a yield of 10% and the 105-room Bloc Hotel Birmingham was sold in July 2025 for £13.6 million or £130,000 per key (€150,000 per key). Additionally, the 104-room Birmingham Marriott was sold in December 2025 for an undisclosed amount.

According to our 2026 European Hotel Valuation Index, hotel values in Birmingham decreased by 1.6% per key in euro terms in 2025, bringing values to 97% of their 2019 level.

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For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Maxime Gauthier Senior Associate [email protected] +44 0 7593572865 (m)