Europe -  Manchester, United Kingdom

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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 manufacture 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. While most events at Manchester’s AO Arena were cancelled or postponed in 2020, several are set to take place throughout the second half of 2021. As per the latest available statistics of 2019, Manchester has hosted more than 10.4 million overnight stays.

The Manchester hotel supply experienced a compound annual growth rate (CAGR) of approximately 3.1% between 2012 and 2019 and is now the largest market outside London (by room count). There are currently 41 properties in the pipeline for Manchester, creating an influx of almost 6,000 new rooms and therefore increased pressure on the future performance of the existing supply. 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).

Within the last decade, the city’s hotel performance has been on the rise and occupancy was stable at around 80% for several years until the arrival of the pandemic in 2020. In addition, rates increased slightly in euro terms at a CAGR of 1.0% for 2009-19.

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 2020, two hotel transactions were recorded in Manchester: the 203-room Renaissance Manchester City and the 52-room Alma Lodge which sold for approximately £2.8 million or £53,000 per key. Hotel values in Manchester decreased by around 14.2% in euro terms and 13.1% in local currency in 2020, due to the COVID-related collapse in demand.

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: Less than -10%

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Nikola Miljković
[email protected]
  • +44 20 7878-7721 (w)
  • +44 7 593572865 (m)