Chester has been named the UK’s most improved hotel market, while Liverpool is the third-strongest performing across the country behind only Edinburgh and Belfast, according to data from Colliers.
The data forms part of Colliers’ Hotel Market Index, which gathers nine key performance indicators for hotel developments across 34 cities in the UK.
According to the consultant, Liverpool’s occupancy rate of 81.8% last year is the fourth-strongest in the UK, behind only London, Edinburgh, and Oxford, while the city placed third behind Edinburgh and Glasgow in terms of the strongest markets for hotel performance in relation to development costs.
Liverpool is also ranked as the top city for revenue per room, with average annual growth of 7.3% over the last four years. The city’s supply is also the fifth highest in the country at 8,731, with a further 878 in the pipeline.
This includes a four-star, 200-bed hotel next to the city’s new cruise liner terminal, which is due to be built by Wates, with work starting later this year. A hotel is also planned for Paddington Village.
A number of additional hotel proposals have come forward in Liverpool so far in the last three months, including an Epic aparthotel at Gambier Terrace, proposals by YPG to convert the Magistrates Court, and a boutique hotel by Elliot Group at Beetham Plaza.
Manchester has the second-largest hotel pipeline outside London, with 2,210 rooms under development; projects already under way include 3 St Peter’s Square, featuring a Staycity aparthotel and a Motel One, along with two hotels at 55 Portland Street.
Others in the pipeline are a 17-storey Maldron Hotel opposite Circle Square designed by architect SimpsonHaugh, and Capital & Centric’s plans for a Leonardo Hotel at Adair Street. Premier Inn also last week signed a pre-let for site at Plot 9a at First Street.
Chester also rose from 11th to fourth in the ranking, beating the likes of London, Glasgow, Cambridge, Brighton, Bath, and Leeds. This has been driven by growth in occupancy levels, along with lower build costs compared to other key locations.
Projects under way in the city include a Hotel Indigo, being delivered by Bowmer & Kirkland. There are also plans for a 109-bedroom EasyHotel on Forest Street.
Julian Troup, head of UK hotels agency at Colliers International, said: “There continues to be high levels of demand for hotel development in the North West of England and throughout the wider Northern Powerhouse area from established global brands and emerging and alternative hotel and hospitality companies.
“The hotel market in the region therefore continues to offer an exciting and rewarding investment user class.”