This North West city is top in the country for regional hotel investment

New research to identify the top cities in England for hotel investment outside London has placed Manchester in the number-one spot.

An annual survey of senior hospitality industry leaders published by professional services giant Deloitte put the biggest city of the North ahead of hotel hotspots further south, including Cambridge, Oxford and Bath.

The European Hotel Investment Survey, which analyses the UK and European hotel market, found that investment in the Manchester hotel sector looks set to continue its momentum in 2018 as the region delivers on key projects.

Hotel investors remain optimistic about growth prospects for next year, according to the research, with growth expected to be highest in bigger cities such as Manchester.

A majority of respondents forecast growth of between 1% and 3%.

The findings complement Deloitte’s annual Manchester Crane survey. Last released back in January, the report noted an uptick in the regional hotel sector. It found that 338 rooms were delivered in 2016 and a further 1,040 were due for completion this year.

Key projects currently under construction include Roomzzz Manchester Corn Exchange and a dual-branded Crowne Plaza and Staybridge Suites off Oxford Road. Both will open early next year.

Deloitte Real Estate partner Simon Bedford said: “Manchester has developed a robust hotel market with strong occupancy levels and a track record of absorbing new supply.

“Appetite for hotel investments in the region is of little surprise in the wake of tourism from overseas while the pound remains weak.”

He continued: “It is pleasing to see Manchester secure its position as the most attractive city in England for hotel investment outside of London, and we look forward to tracking the continued growth of the sector in next year’s Manchester Crane Survey.”