The latest UK Hotels Market Index by real estate advisor Colliers International shows the two cities being among the top six centres in the country for having a strong pipeline of new rooms coming on to the market.
The others are London, Edinburgh, Glasgow and Belfast.
According to Colliers, another 2,073 hotel rooms will be added to 17,894 available in Manchester as of 31 December 2017, an increase of 11.6%, while 1,170 or 14.3% of existing supply will be added to 8,205 rooms in Liverpool.
As of the fourth quarter of 2017, there were 67 hotels in the development pipeline for Manchester with about 20% of those due to open between 2017 and 2019 and the remainder on hold or speculative developments.
Julian Troup (pictured), head of UK Hotels-agency and based at the Manchester office of Colliers, said the weak pound, the strengthening of global and Eurozone economies and the increasing frequency of direct flights with Asia had all contributed to the growth of the city’s hotel sector.
He said: “Hotel sector performance in Liverpool and Manchester is expected to stay strong but there is a degree of caution regarding the extent of supply growth with potential future consequences for performance.
“Brexit obviously adds an element of uncertainty to hotel market prospects in Manchester and elsewhere in the UK although current market conditions do not show it having a negative impact.
“Manchester is one of the most visited cities in the UK, benefiting from its diverse culture, burgeoning services sector, wide range of tourist attractions and of course, the United and City effect while the visitor economy of Liverpool also continues to benefit from its ongoing renaissance.”
Overall, the UK Hotels Market Index revealed continued year on year growth for the sector in the UK, with RevPAR increasing by 3.8% – significantly ahead of GDP growth.
The annual report, now in its third year, is an analysis of 34 locations throughout the UK, ranked to determine ‘hot spots’ for hotel development and acquisition.