Europe -  Manchester

Forming part of the UK’s ‘Core Cities Group’ and often described as the capital of the north, Manchester is a centre for commerce, the arts, media and higher education. It is also regarded as the third-best place in the UK in which to locate a business while overseas visitors make it the country’s third most visited city. It is claimed that Manchester was the world’s first industrialised city, notable for the central role it played in the Industrial Revolution. Manchester was the dominant international centre of textile manufacture and cotton spinning, and during the 19th century was nicknamed ‘Cottonopolis’. However, much of this trade is now based in the Far East. The city has enjoyed great success in attracting investment over the past several years and has become one of the UK’s fastest-growing cities. As a result, 65 of the FTSE 100 companies have a presence in Manchester and around 40% of the northwest’s top 500 companies are based there. Furthermore, the city is an important conference, leisure, sports and retail destination.

Manchester’s population regularly swells with a huge influx of visitors who come to watch the city’s two Premier League football teams (Manchester United and Manchester City) or to attend major events such as the Labour and Conservative party conferences. Additionally, the city attracts leisure visitors keen to sample its thriving music, retail and cultural scenes.

The Manchester hotel market grew by approximately 2,800 bedrooms between 2012 and 2017, the majority of which were within the budget sector followed by the four-star sector; these sectors currently account for 37% and 36% of the bed supply, respectively. Of the total supply, 40% is operated under a global or international brand and 46% is operated by a national or regional brand, with the remainder being independent.

The economic impact of tourism activity is significant. According to the 2016 STEAM report, Greater Manchester’s tourism sector is now worth £7.9 billion and supports approximately 94,000 FTE jobs. The city attracts around 119 million visitors a year, of which 11 million are staying visitors and the remaining 108 million are day visitors. Manchester is the second most visited city for staying visits from the domestic market (behind London) and the third most visited destination by international visitors (behind London and Edinburgh). The 2017 STEAM report was not available at the time of writing.

The continued strong demand in the city has translated into year-on-year increases in RevPAR performance across the hotel market in recent years. While occupancy has remained relatively stable at around 80% since 2014, average rates have been on the rise and drove average RevPAR gains of around 10% annually (in euro terms) from 2014 to 2016. Despite the terrible Manchester Arena bombing in May 2017, visitation levels to Manchester only experienced limited impact in the first few weeks following the attack. As a result, although 2017 has been a somewhat slower year in terms of hotel performance, the Manchester hotel market has still experienced a positive overall trend. A strong pipeline of development projects, including the £44 million renovation of Victoria Station as part of the ‘Northern Hub’ rail improvement scheme, the 20-acre NOMA (North Manchester) regeneration (to include residential, retail, office and public space) and the Manchester Airport City North development (an £800 million, 15-year development including offices, logistics, manufacturing and leisure space), presents a positive outlook for the future growth of the city.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Manchester RevPAR Change (€Euro)

Manchester RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Simon Hulten
[email protected]
  • +44 020 7878-7775 (w)