Manchester Hotels Market Update

Alistair Greenhalgh

Manchester hotels market update

01/06/2017

Investment appetite in Manchester remains healthy

With an 80% occupancy rate, Manchester’s hotel market continues to outperform the UK average and the city is increasingly seen by investors as a real alternative to London. Hotel development is keeping pace, with more new hotel rooms being built this year, adding to the 156 hotels currently providing over 16,600 bedrooms in the city of Manchester, city of Salford, Trafford and Bury. 

The four star and budget sectors currently account for 37% and 35% of the bed supply respectively. Of the total supply, 40% is operated under a global or international brand, and 46% are operated by a national or regional brand with the remainder being independent. (Data provided by AM:PM Hotel Data & Intelligence)

Budget and four star dominate growth

The Manchester hotel market grew by approximately 2,308 bedrooms between 2012 and 2016, the majority within the budget sector (47), followed by the four star sector (33%). Most major international brands are now in Manchester, and supply is dominated by the big players. The majority of confirmed schemes in the city are either four-star standard or budget, demonstrating this continuing shift in market demand.

Healthy sustainable outlook

We believe Manchester’s hotel sector looks healthy and that occupier demand can sustain current growth. However, increased competition will challenge private and independent hoteliers to stay at the front of developments in social media and mobile websites to maintain market share. Capital expenditure will be needed to offset increased competition from newer hotels.

For further information relating to this news article contact   or for press enquiries contact 

Contact us now

Alistair Greenhalgh
Director - Hotels

0161 242 7097

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