For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   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 is currently at 1.1 million. 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. Visitation to Birmingham is driven primarily by the domestic market (almost 70%) and most demand is leisure-oriented (circa 65%). Birmingham was named as 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. Consultation for the new master plan, ‘Our Future City Plan’, was launched in January 2021 and aims at strategising Birmingham’s growth over the next 20 years. With the HS2 project on the horizon (phase one is expected between 2029 and 2033, according to the latest updates published in February 2023), connectivity to the city will be further improved. 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 7.0%, average rate grew by just 2.0% in 2017 (in pound sterling terms), 2.5% in 2018 and contracted by 1.0% in 2019. More recently, in 2020 marketwide RevPAR declined by around 75% over 2019, a downtrend instigated by the adversity of the pandemic. In 2021, performance remained below historical levels, with RevPAR standing at less than 60% of the 2019 level owing to the lack of international demand and large events. In 2022, the Birmingham hotel market experienced a significant uplift in both occupancy and average rates, returning the RevPAR to pre-pandemic levels, representing a 3% increase on 2019 RevPAR in real terms.

Birmingham’s pipeline over the next five years is amongst the largest in Europe, with 23 projects representing an aggregate 3,250 rooms (22.5% of existing supply). The majority of these developments fall within the upper midscale service class and will be independently operated. Amongst the standout projects is the Paradise Circus redevelopment scheme, a private-public joint venture with Birmingham City Council, Hermes Investment Management and the Canada Pension Plan Investment Board. The 17-storey hotel building is expected to have 250 guest rooms and be completed in December 2025 as part of phase two of the mixed-use development.

In 2022, the hotel transaction volume in Birmingham was very limited, with the only transaction being the sale of the 52-room Hotel Indigo Birmingham for €14.5 million (or €279,000 per room) in July.

Overall, our HVI analysis indicates a value increase of 5.0% per key in euro terms (4.1% in pounds sterling) in Birmingham in 2022 compared to 2021.

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

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