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 visitation numbers regularly swell 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 political-party conferences. Additionally, the city attracts leisure visitors keen to sample its thriving music, retail and cultural scenes. As per the latest available statistics of 2017, Manchester has hosted more than 1.3 million ‘staying visits’ alone.

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. The economic impact of tourism activity in the city is significant. 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).

Given that average rates in Manchester in 2008 were already relatively low in comparison to many other European cities, 2009 inevitably presented difficult times for hotels in the city, but only a 5% drop in average rate was reported, considerably better than many other markets. Within the last decade, the city’s hotel performance has been on the rise and occupancy has been stable at around 80% for a number of years now. In addition, rates have grown slightly in euro terms at a compounded annual rate of 1.0% for 2009-18. Values of hotels in Manchester decreased by around 1.5% in euro terms and 0.7% in local currency in 2018.

In 2018, five properties transacted in Manchester, four of which were part of portfolio acquisitions, and the total sales price amounted to around £300 million. There are currently 22 properties in the pipeline for Manchester, all expected to open by 2021 and create an influx of more than 4,000 new rooms.

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)
Magali Castells
[email protected]
  • +44 20 7878-7710 (w)
  • +44 7 850205149 (m)