Manchester Hotel Market Sees Decline in Revenue and Occupancy

What's Happening?

The Manchester hotel market has experienced a notable decline in revenue and occupancy rates, according to a recent report by Cushman & Wakefield. The report highlights that the GOP per available room (PAR) for branded full-service hotels in Manchester dropped by 13.4% in the 12 months ending August 2025. This decline is attributed to a 4.0% decrease in revenue, which was only slightly offset by reduced expenses. RevPAR reached £90.5 year-to-date, marking a 6% decrease from the previous year, primarily due to a 5.3 percentage point drop in occupancy. Despite a slight improvement in average daily rate (ADR) by £1.2, food and beverage revenue also saw a decline. The report notes that total expenses decreased marginally, driven by reductions in cost of sales and other expenses, although payroll costs increased.

Why It's Important?

The decline in Manchester's hotel market performance is significant as it reflects broader economic challenges and shifts in consumer behavior. The decrease in occupancy and revenue could impact the profitability of hotel operators and related businesses in the hospitality sector. This downturn may lead to strategic adjustments by hotel management, including cost-cutting measures or changes in marketing strategies to attract more guests. Additionally, the opening of new hotels, adding 888 rooms, suggests increased competition, which could further pressure existing establishments to innovate and improve service offerings. The economic implications extend to local businesses and tourism, potentially affecting employment and investment in the region.

What's Next?

As the Manchester hotel market navigates these challenges, stakeholders may focus on strategies to boost occupancy and revenue. This could involve enhancing marketing efforts, offering competitive pricing, or improving guest experiences to attract more visitors. The report indicates that occupancy rates showed slight improvements in September and January, suggesting potential seasonal trends that could be leveraged. Additionally, the opening of new hotels may prompt existing operators to differentiate their offerings to maintain market share. Monitoring economic indicators and consumer trends will be crucial for hotel operators to adapt and thrive in the evolving market landscape.

Beyond the Headlines

The decline in Manchester's hotel market performance may have broader implications for the city's economic health and its attractiveness as a tourist destination. The hospitality sector is a key component of the local economy, and sustained declines could affect employment rates and business investment. Furthermore, the competitive pressure from new hotel openings may drive innovation and improvements in service quality, potentially benefiting consumers. The report's findings could also influence policy decisions regarding tourism promotion and infrastructure development to support the hospitality industry.