Europe -  Manchester

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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 manufacturing 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. 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 (2022), Manchester attracts 119 million visitors a year, with 11 million of those being overnight stays.

The economic impact of tourism activity in the city is significant. Manchester is the UK’s second most visited city for staying visits for both domestic and international markets (behind London). Manchester also has a number of large-scale infrastructure projects, scheduled or currently under development, that should positively affect hotel demand in the city, such as the Co-Op Live Arena which will be the UK’s largest indoor facility (having capacity for 23,500 people) and is recently opening in April 2024.

Within the last decade, the city’s hotel performance has been on the rise and occupancy was stable pre-pandemic at around 80% and rates increased slightly in euro terms at a CAGR of 1.0% for 2009‑19. Following the pandemic, the market started to recover strongly from June 2021, both in terms of occupancy and average rate, benefitting from relatively robust leisure and corporate domestic demand. In 2022, the Manchester market continued to recover as demand eased back to figures slightly below historical levels. In 2023, the Manchester hotel market’s occupancy increased by close to 10% compared to the previous year, and average rate grew by 6%, which resulted in an uplift of 3% in compared to 2019.

The Manchester hotel supply experienced a compound annual growth rate (CAGR) of 4.2% between 2012 and 2023 and is the largest market outside London (by room count). There are currently 25 properties in the pipeline for Manchester, creating an influx of around 4,500 new rooms, which could cause increased pressure on the future performance of the existing supply. Some notable expected opening include the 412-room Tribe Manchester Airport, planned to open in June 2025, the 162-room W Hotel Manchester and the 154-room Motto by Hilton Manchester Piccadilly, both expected to open in 2027.

2019 proved to be a record year for Manchester as it was ranked as the regional UK market with the greatest transactional volume, with total hotel investments exceeding £500 million, and with an 18% share of total UK regional investment. In 2022, five hotel transactions were recorded in Manchester, including the sale of the 188-room Maldron Hotel for €35 million, and that of the 189-room Hotel Brooklyn for €28 million. In 2023, another five hotels transacted in Manchester, including the 193-room Premier Inn Manchester City for €27 million (€138,000 a key), the 87-room The Ainscow Hotel for €8 million (€94,000 a key) and the 114-room Manchester Corn Exchange for €43 million (€381,000 a key).

Hotel values in Manchester increased by 1.5% in euro terms and decreased by 1.2% in pounds sterling in 2023 over 2022, thanks to the city’s strong economic and tourism fundamentals, which are expected to continue to drive the market’s recovery going forward.

Change In Value For Market: (€Euro)

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: More than -10%

For more information, please contact:

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