Manchester is top regional hotel 'hot spot'

Manchester is top regional hotel 'hot spot'

Manchester has been ranked as the leading regional hotel market in England in the inaugural UK Hotel Market Index from real estate advisors Colliers International.

The sector-leading research analysed 36 locations in the UK and ranked them according to key performance indicators (KPIs) to determine ‘hot spots’ for hotel development and acquisition.

Colliers identified Manchester as England’s premier regional hotel ‘hot spot’ because of strong investment and valuation parameters and a buoyant performance by its existing hotels.

Only Cardiff emerged above Manchester in the United Kingdom rankings – partly relating to hotel business generated by it hosting the Rugby World Cup in 2015.

Manchester also scored highly for hotel occupancy levels in 2015 thanks to its burgeoning popularity with both business and leisure visitors.

Of the top five markets for hotel occupancy, Manchester achieved a figure of 81% in 2015, an increase of two per cent from 2014 because of consistently strong week and weekend demand. The city’s figure for 2015 matched that for London.

Julian Troup, head of UK hotels and based at the Manchester office of Colliers International, said: “High land prices in London mean investors are looking outside of the capital for opportunities to spend their cash.

“Consequently, the hotel market in Manchester and across the wider North West continues to go from strength to strength. There is a healthy growth in trade and value in line with the wider economy, and whilst that remains stable due to supporting accommodative monetary policy, this growth should continue in 2016.

“The major North West cities of Manchester and Liverpool are seeing unprecedented growth. Occupancy is growing in both cities, indicating a supply shortage in the market.  This is in spite of the fact that a further 1,073 rooms opened in Manchester and Liverpool during 2015.”