For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2025
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2024
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2023
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2022
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2021
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2020
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2019
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2018
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2017
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2016
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2015
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2014
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2013
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2012
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2011
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2010
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2009
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2008
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2007
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2006
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2005
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2004
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2003
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2002
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2001
Birmingham’s population reached approximately 1.1 million in 2024 and is projected to grow to around 1.2 million by 2028. With a large student population supported by several major universities, Birmingham is considered one of the youngest cities in Europe, with nearly 40% of residents under the age of 25.
The city offers a wide range of cultural and sporting attractions, including Utilita Arena Birmingham, the O2 Academy, The Alexandra Theatre, and Villa Park, home to Aston Villa FC, which has a long history of hosting major sporting events. In 2022, Birmingham successfully hosted the Commonwealth Games, the first to be held in England since Manchester in 2002. The event attracted a record-breaking 1.5 million spectators, making it the most attended Commonwealth Games in UK history. In December 2022, planning permission was granted to expand Villa Park, increasing capacity to over 50,000 seats.
Birmingham is the UK’s second-largest city economy, playing a central role in both the West Midlands region and the broader national economy. It is a hub for financial services, advanced manufacturing, digital tech, and life sciences. Birmingham’s long-term urban development is guided by the ‘Big City Plan – Stage 2’, launched in 2010, which aims to expand the city core by 25%, create more than 50,000 new jobs, and contribute an estimated £2.1 billion annually to the local economy. Also, as the location of the National Exhibition Centre (NEC) – one of the UK’s largest exhibition venues – Birmingham benefits from robust MICE (Meeting, Incentive, Conference and Exhibition) demand. The city hosts several major annual events, including the Spring Fair, Autumn Fair, and the Caravan Show.
Hotel occupancy in Birmingham reached the mid-70s in the years leading up to the pandemic, with average rates showing inflation-aligned growth. Following the COVID-19 disruption, 2022 saw a sharp rebound in RevPAR, driven by strong gains in both occupancy and average rate. In real terms, RevPAR for 2022 already matched, if not slightly improved upon, 2019 levels. Hotel performance continued to improve throughout 2023 and 2024, with demand returning to historical levels by 2024. Although average rate growth in 2023 was minor, 2024 saw more encouraging increases, supported by continued demand recovery. This resulted in a 2024 RevPAR (in euro terms) that was about 10% above 2019 in real terms. In pounds, the improvement is slightly subdued owing to the appreciation of the pound between 2019 and 2024.
Birmingham’s hotel pipeline consists of approximately 2,300 rooms across 20 projects – equivalent to about 16% of the current supply. Most new developments fall into the Upper Midscale and Upscale segments and will operate independently. Notable upcoming openings include the 156-room Murdoch Building & Pitman Chambers (June 2026), the 146-room Radisson RED Birmingham Edgbaston (April 2027), and a 400-room hotel that will part of upcoming Martineau Galleries neighbourhood (April 2027).
Hotel transaction activity in Birmingham remained subdued in 2024, with only a few deals recorded, mostly involving limited-service properties. These included the 140-room Premier Inn Birmingham City, sold as part of a portfolio transaction for €20.1 million (€144,000 per room) in August, and the 88-room Travelodge Birmingham, sold for €6.3 million (€72,000 per room) in December.
According to our 2025 European Hotel Valuation Index, hotel values in Birmingham rose by 1.2% per key in euro terms in 2024, bringing values to 98% of their 2019 level.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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