For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
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2001
Often described as the ‘capital of the north’, Manchester is a hub for commerce, the arts, media and higher education. Home to top-tier institutions such as the University of Manchester, the city boasts strengths in engineering, science and digital technologies. It has built a strong reputation for innovation, with numerous business incubators and accelerators fostering a dynamic start-up ecosystem.
Ranked as the third-best location in the UK to start or grow a business, Manchester also attracts a significant number of international visitors, making it the third most visited city in the country after London and Edinburgh, partially as the city remains a magnet to those attending major events or coming to see its two iconic Premier League football clubs, Manchester United and Manchester City. The clubs’ stadiums (Old Trafford and the Etihad Stadium) are key sporting landmarks. Manchester United recently announced a £2 billion redevelopment plan to replace Old Trafford with a new, 100,000-seat stadium, aiming to make it the largest football venue in the UK.
As a prominent destination for conferences, leisure, sports and retail, Manchester draws a wide variety of visitors. Many come to experience its thriving music scene, cultural attractions and diverse shopping districts. Tourism's economic impact on the city is substantial and continues to grow.
According to airport statistics, in 2024, Manchester Airport experienced a 9.5% growth in passenger numbers over the previous year, surpassing 2019 numbers by around 1.3 million. The recent opening of the Co-Op Live Arena, the UK’s largest indoor facility (having capacity for 23,500 people), in May 2024, as well as a number of large-scale infrastructure projects such as NOMA and the Mayfield regeneration plan, is anticipated to positively impact hotel demand in the city.
Following the pandemic, occupancy levels had nearly returned to pre-COVID norms by 2023, underpinned by strong growth in average daily rates. In 2024, market performance stabilised, with RevPAR reaching real parity with 2019 levels in euro, albeit remaining approximately 5% below in pounds sterling due to the slight appreciation of the sterling over the period. Nevertheless, this result shows resilience and underscores the strength of Manchester’s market, which has demonstrated the capacity to absorb a substantial volume of new hotel supply.
Between 2016 and 2024, Manchester’s hotel supply recorded a compound annual growth rate of nearly 4%, making it the largest hotel market outside London in terms of room count. Over 30 new projects are currently in the pipeline, set to add around 3,300 rooms in the coming years. Upcoming openings include the 187-room Zedwell Royal Buildings Manchester (spring 2026), and the 162-room W Hotel and 154-room Motto by Hilton (both in 2027). Recent notable openings include the renovated 338-room Marriott Manchester Piccadilly (April 2024), the 215-room The Reach Piccadilly, a Tribute Portfolio Hotel (July 2024) and the 224-room Treehouse Hotel Manchester (March 2025).
Manchester had a standout year in 2019, achieving the highest hotel transaction volume among regional UK markets, with deals exceeding £500 million and capturing 18% of all UK regional hotel investment. Transaction activity has remained steady, with five deals each in 2022 and 2023. In 2024, major transactions included the sale of the 199-room former Premier Inn for €52.3 million (€263,000 per key) in April and Blackstone’s acquisition of three Village Hotels in June, while in November, the 214-room Manchester Airport Marriott sold as part of the ADIA UK portfolio, and the 157-room Piccadilly Gardens Travelodge sold for approximately €29 million (€184,000 per key).
Despite a 0.9% decline in hotel values in euro terms in 2024, as per our 2025 European Hotel Valuation Index, Manchester’s robust tourism fundamentals and the scale of recent and upcoming development projects point to continued long-term growth. These trends are expected to support further recovery and strengthen the city’s position as one of the UK’s top hotel markets.
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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