For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:   2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Often described as the ‘Capital of the North’, Manchester is a leading centre for commerce, culture, 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 also built a strong reputation for innovation, supported by a network of 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. This is partially driven by the appeal of hosting 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 diverse range 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, Manchester Airport experienced a 4% growth in passenger numbers in 2025 compared with the previous year. The opening of the Co-op Live Arena in May 2024, the UK’s largest indoor entertainment venue with a capacity of 23,500, together with large-scale infrastructure projects such as NOMA and the Mayfield regeneration plan, is expected to positively impact hotel demand in the city.

Following the pandemic, hotel occupancy levels had largely returned to pre-COVID norms by 2023, underpinned by strong growth in average rates. In 2024, market performance stabilised, with RevPAR reaching real parity with 2019 levels in euro, albeit remaining 5% below in pounds sterling owing to the slight appreciation of the sterling over that period. As in a large portion of UK cities, average rates decreased slightly in 2025. This market remains a resilient and strong UK market, with the capacity to absorb a significant volume of new hotel supply, as demonstrated by its ability to accommodate 12% growth in supply between 2019 and 2025.

Between 2016 and 2025, Manchester’s hotel supply recorded a compound annual growth rate of nearly 3%, making it the largest hotel market outside London in terms of room count. More than 30 new projects are currently in the pipeline, with around 4,000 rooms expected to enter the market in the next three years. Upcoming openings in the near future include the 187-room Zedwell Royal Buildings Manchester, the 162-room W Hotel and 154-room Motto by Hilton (all expected in 2027).

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 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). Transactions continued into 2025 with the sale of the 61-room Heathcote Hotel, the 365-room Clayton Manchester Airport in November, and the 276-room Premier Inn MIX Manchester in December.

The 3.4% value decline in Manchester hotel values in euro terms in 2025, as per our 2026 European Hotel Valuation Index, was driven by topline pressures in the market as well as continually increasing operating costs present across the UK.

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

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

Change In Value For Market: (€Euro)

Manchester RevPAR Change (€Euro)

Manchester RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 7725781037 (m)
	Maxime Gauthier Senior Associate [email protected] +44 0 7593572865 (m)