CHESTER is officially the rising star of the UK's hotel market in the UK, according to the latest sector research by real estate advisors.
The Colliers’ UK Hotel Market Index 2018 ranks Chester as number one in its category of rising stars, ahead of Gloucester, Liverpool, Newcastle and Brighton, representing a marked rise for the historic centre from 11th position in the 2017 Index.
Chester also rose from 11th to fourth in Colliers’ ranking of the top 10 hotel markets overall, behind Edinburgh, Belfast and Liverpool in first, second and third respectively but ahead of Bath, London, Glasgow, Brighton, Cambridge and Leeds.
Key factors behind the city’s success in both tables include growth in occupancy levels at its hotels and lower build costs when compared to other locations.
The Colliers’ UK Hotel Market Index is an innovative market tracking index that analyses nine key performance indicators in 34 cities in the UK and consolidates them into a single ranking.
The criteria used are gross value added (GVA) per capita, land site prices, market appetite, room occupancy, four-year RevPAR trend, build costs, active pipeline as a percentage of supply, valuation exit yields and average daily rate.
Liverpool also performed strongly in the Index, being ranked third overall, fourth for its occupancy rate, third in the category of rising stars, number one for RevPAR growth, third in terms of hotel performance in relation to development costs and fifth for its active pipeline of hotel rooms as a percentage of total supply.
Meanwhile, Manchester ranked second only to London in terms of its strong pipeline of hotel rooms becoming available over the next two years.
Julian Troup
Julian Troup, head of UK hotels agency at Colliers International, said: “Chester’s hard-earned and thoroughly deserved table-topping position as our rising star of the UK hotel market, largely due to it being an established “seven day” market, with strong Monday to Thursday business demand and high levels of leisure demand at the weekends.
“It further reflects the high levels of demand for hotel development and enhancement throughout the North West of England and the wider Northern Powerhouse from established global brands and emerging and alternative hotel and hospitality companies. The hotel market in Chester and elsewhere in the region therefore continues to offer an exciting and rewarding investment user class.”
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