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.”