Manchester Hotel Market Spotlight

KEY TAKEAWAYS

• The sample of branded full-service hotels in Manchester recorded declining profits during 12 months ending August 2025, with nominal GOP per available room down by 13.4%.
• A 4.0% drop in revenues drove the GOP decline, while a slight -0.5% reduction in total expenses was insufficient to offset the impact.
• The average daily rate (ADR) increased by 0.9% to GBP 128. However, the occupancy level of the selected hotels declined by 6.9%, reaching 71.0% during the period.
• One factor contributing to the occupancy decline was the increase in supply. A total of 888 new rooms were added, while one hotel closed (-148 rooms), resulting in a 1.6% increase in supply. The growth was particularly strong within the Midscale and Upper Upscale classes, where the supply increased by 15% and 3.4%, respectively.
• Overall, declining revenues combined with only modest expense reduction led to 2.7pp drop of GOP profit margin to 24.4%, representing 8.7% GOP flex.