Manchester hotel investment highest of any UK regional city in 2017

31 January 2018

Hotel investment volumes in Manchester were higher than any other UK city outside of London in 2017, according to international real estate advisor Savills, with nine deals totalling £178.55 million.  This was 52% greater than the £117.43 million seen in Edinburgh, the second highest regional city by volume, and more than double Manchester’s £83.1 million total in 2016.

Deal count was also up year-on-year in Manchester, reports the firm, with nine hotel transactions completed in 2017 compared to six in 2016.  Overseas investors were the dominant buyer type, accounting for 81.5% (£145.5 million) of hotel deals.  This was led by Singaporean and US investors, with purchases totalling £91 million and  £54.5 million respectively. 

Savills highlights Dominvs Group’s £54.5 million sale of the Holiday Inn Manchester City Centre to US-based Starwood Capital and Westmont Hospitality’s £52.5 million sale of the Lowry Hotel to Singaporean City Developments Ltd (CDL) among the most notable deals of last year.  The latter underlines the particularly strong demand from Asia-Pacific buyers in Manchester, where 49.3% of all hotel acquisitions in the UK regions by this buyer type were located in 2017.

There were 1,127 individual hotel rooms sold in Manchester last year, says Savills, marking a 32% increase on the 854 room total of 2016.  At £144,560, the average price per room was 36% higher than the UK average (excluding London) of £106,290.

Tom Cunningham, hotels director at Savills Manchester, comments:  “Manchester is a truly global city with high levels of recognition thanks to its international airports, forward-thinking city council, strong visitor numbers and numerous sporting, business and leisure events every year.  The strength of its hotel investment market is a reflection of this, and we expect 2018 to be another robust year.”

 
 

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Tom Cunningham

Tom Cunningham

Director

Savills Manchester

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