The Manchester Hotel Market Spotlights offer insights into top-line hotel performance and profitability, providing a fresh snapshot of the main drivers behind the latest market shifts compared to last year. This edition is based on a sample of branded full-service hotels in Manchester, analysing key revenue streams and cost dynamics.
The sample of branded full-service hotels in Manchester recorded a GOP per available room (PAR) of £36.0 in the 12 months ending in August 2025. This represents a 13.4% drop compared to the same period last year, due to a 4.0% decline in revenue, which was only marginally offset by the lower expenses (-0.5%).
RevPAR reached £90.5 year-to-date, £5.8 below last year (- 6%). This was due to a 5.3pp. decrease in occupancy while ADR improved by £1.2 (+0.9%). The F&B revenue declined slightly to £54.8 PAR (-1.4%) during the period.
Meanwhile, total expenses decreased by £0.5 YoY, reaching £11.14, driven by Cost of Sales (-£0.7, -3.4%) and Other Expenses (-£0.4, -1.3%). These savings were partially eroded by the rising Payroll costs (+£0.6, +1.1%).
YoY occupancy decline was primarily driven by March (- 17.0%), followed by August (-14.5%), and May (-13.7%). During the period, the only months with increasing occupancy were September and January, recording increases of 2.5% and 0.2%, respectively, compared to last year.
There were three hotel openings in Manchester during the period, adding 888 new rooms. When weighted by opening date, the total supply only increased by 1.6% (+3.4% in the Upper Upscale segment).
The year-on-year decrease in total revenues was slightly compensated by the decline in total costs, leading to a GOP flex of 8.7% and a GOP margin of 24.4% (-2.7pp.).
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