Commercial property consultancy Colliers International analysed 34 locations across the country to determine where was most attractive for hotel developers and investors. Tony McDonough reports.
Liverpool is one of the UK’s top ten hotspots for hotel development and acquisition, a new survey reveals.
Commercial property consultancy Colliers International analysed 34 locations across the country to determine where was most attractive for developers and investors.
Chester was top of the league table – the city’s high position is mainly due to good occupancy levels, an upward revenue per available room (RevPAR) trend and a low active pipeline.
Liverpool came in at number seven ahead of Manchester, Leeds and Birmingham and behind York, Oxford, Bristol, Edinburgh and Cambridge.
Liverpool has seen a raft of new hotels and apart hotels developed in the city over the past few years as the annual value of the city region visitor economy has soared past the £4bn mark.
One of the most active developers has been locally-based Signature Living, whose flagship outlets are the 30 James Street and Shankly Hotels.
More development is in the pipeline including a plan by a Singapore investors to turn Liverpool’s Municipal Building into a four star hotel.
The Colliers report uses nine key performance indicators (KPIs) to score each of the 34 locations a figure from one to five (one being the lowest and five being the highest).
The KPIs include land site prices; build costs; market appetite; valuation exit yields; room occupancy; average daily rate; room occupancy rates; four-year RevPAR Trend; active pipeline as a percentage of current supply and construction costs.
Marc Finney, head of hotels & resorts consulting at Colliers, said: “The data in our second report reveals the ever-changing nature of the UK hotels market.
“The data demonstrates that London is not the only city that investors should be watching and offers a credible indication to influence their decision-making process.”