Highest hotel investment marks out Manchester as a ‘truly global city’

Lowry HotelMANCHESTER saw the highest volumes of hotel investment last year in the UK excluding London, according to real estate advisor Savills.

With nine deals totalling £178.55m, this was 52% greater than the £117.43m seen in Edinburgh, the second highest regional city by volume, and more than double Manchester’s £83.1m total in 2016.

Overseas investors were the main purchasers, accounting for 81.5% (£145.5m) of hotel deals.  This was led by Singaporean and US investors, with purchases totalling £91m and  £54.5m respectively.

Savills highlights Dominvs Group’s £54.5m sale of the Holiday Inn Manchester City Centre to US-based Starwood Capital and Westmont Hospitality’s £52.5m sale of the Lowry Hotel (pictured) to Singapore-based City Developments Ltd (CDL).

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, said:  “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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