Greater Manchester attractive for hotel investment

Manchester ranks as the UK’s fourth most attractive city for hotel investment, according to research by Deloitte.

The business advisory firm’s European Hotel Industry Survey reveals the top ten most attractive UK cities for hotel investment, following a survey of more than 100 senior figures from the international hospitality sector.

Nationally, Edinburgh topped the list of cities most attractive to investors for the sixth year running, followed by Cambridge and Oxford. Elsewhere in the North-West, Liverpool ranked ninth. Across Europe, Amsterdam was ranked highest for the fourth consecutive year, with London falling behind Paris into third and Lisbon and Madrid rounding out the top five.

Despite the success of the regional cities, 68 per cent of investors felt that Brexit made the regions less attractive for investment, with the majority also believing that revenues per available room will be negative or flat over the coming year. This differs significantly to the state of the capital, with 42 per cent of investors believing that London will not be affected by Brexit and 53 per cent expecting positive revenues per available room growth.

Simon Bedford, partner and head of Deloitte Real Estate, said:

“While both Manchester and Liverpool are extremely attractive to investors, it is a very mixed position across the UK and one only has to scratch away at this surface to see thriving major cities and a struggle outside major financial centres. There are much larger variances in performance between markets in the regions, due to the pace of growth slowing down and the changing landscape of supply in key locations suppressing rates… A weaker pound continues to support inbound and domestic leisure.”

Deloitte’s European Hotel Industry Survey 2019 is based on responses from 111 senior hospitality figures from across the world, including owners, lenders, developers and investors. Respondents answered a series of questions on the European hotel investment market to ascertain their views of key trends and how these will shape the industry in 2019 and beyond.