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HVS In-Depth Europe Hotel Valuation Index:   2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Birmingham’s population has increased by more than 100,000 over the last decade and reached around 1.1 million in 2023. It is considered the ‘youngest’ city in Europe as 40% of Birmingham’s residents are estimated to be under 25, owing mainly to the large number of students. Birmingham has become an events-led market, as the variety of theatres, concert halls and venues across the well-located city have helped forge a reputation for culture and the arts. Birmingham was a host city for the 2022 Commonwealth Games, the first in England since Manchester in 2002. The event counted a record 1.5 million spectators, which made it the most popular Commonwealth Games to have ever been held in the UK. The former £1.3 billion city master plan, initiated in 2007, was revised by the council and replaced in light of the pandemic. The ’Our Future City Plan’ has recently been launched in Birmingham, which is a 20-year development aiming at improving economic, social and environmental aspects of the city by 2040. MICE demand is also strong in Birmingham, as it is home to the Birmingham National Exhibition Centre, which is located close to the airport and is able to compete with other large UK exhibition centres thanks to major annual events such as the Spring Fair, the Autumn Fair and the Caravan Show.

Hotel occupancy grew from the mid-60s in 2009 to the mid-70s in 2019. Meanwhile, after three years of steady growth above 5.0%, average rate saw close to inflationary increases in 2017 and 2018, slightly contracting afterwards in 2019. The city’s hotel performance in 2020 and 2021 was strongly affected by the COVID-19 pandemic. In 2022, the Birmingham hotel market experienced a significant uplift in both occupancy and average rates, returning the RevPAR to pre-pandemic levels, representing between 2.5% and 5% increase on the 2019 RevPAR in real terms. During 2023, Birmingham’s hotel demand returned to just under the historical level and, even though the average rate saw modest nominal growth, which pushed its RevPAR to almost 5% above that of 2019 in real terms.  

Birmingham’s pipeline over the next few years consists of 12 projects representing an aggregate almost 2,000 rooms (13% of the existing supply). Most of these developments fall within the Upper Midscale and Upscale classes and will be independently operated. The most notable developments include the 229-room Square Hotel (opening in April 2024); the 155-room Dean Birmingham (November 2025) and the 175-room Wolverley House (December 2025).

In 2023, the hotel transaction volume in Birmingham remained very limited, with the only transaction being the sale of the 120-room ibis Styles Birmingham Centre for €17.3 million (or €144,000 per room) in December.

Overall, our HVI analysis indicates a value increase of 0.8% per key in euro terms (-1.7% in pounds sterling) for Birmingham in 2023 compared to 2022, which represents a recovery of Birmingham’s hotel values to 97% of the 2019 level.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change	0.0%
Market Supply Growth

Change In Value For Market: (€Euro)

Birmingham RevPAR Change (€Euro)

Birmingham RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 2078787722 (w) +44 0 7725781037 (m)
	Julia Dzerkach Associate [email protected] +44 0 2078787742 (w) +44 0 7912240964 (m)
	Clemence Sennavoine Senior Associate [email protected] ++44 0 7736273439 (m)