Manchester and Liverpool enter top 10 UK cities for hotel development

Manchester and Liverpool have both entered the top 10 of the Colliers UK Hotel Development Index 2026, spurred by strong revpar (revenue per available room) growth, lower land costs and robust development pipelines.

The annual index, which grades 35 UK cities on a range of factors including build costs and average daily rates (ADR), found that the two North West cities had “comparatively lower land and project delivery costs than gateway markets such as Edinburgh and London” – which spurred them both into the top 10 for the first time.

Manchester, which came in 10th overall, was hailed by Colliers as a “consistently sought-after market” for property investors with well-established infrastructure – as demonstrated by the recent sale of the city’s Ibis and Novotel hotels to A&o.

While Liverpool, which ranked ninth overall, had a more limited development pipeline, it registered “exceptional revpar growth” of 8% year-on-year, up to £73.45 in 2025.

Colliers’ head of hotel development and consulting Richard Candey said: “Manchester and Liverpool have arrived in the top 10 for very different reasons, and that’s what makes the North West such an interesting region right now.

“Manchester is simply a market that consistently delivers, and the cost of entry remains more attractive than London or Edinburgh. Liverpool is a different kind of opportunity, strong revpar growth, a disciplined pipeline and real confidence that returns won’t be diluted by competing supply.”  

Siddhika Shah, director at Colliers Hotels, added: “The North West’s emergence at this level is not a one year anomaly, it reflects a structural shift in where domestic and international hotel capital is looking.

“I expect both markets to remain firmly in the top 10 and, for Liverpool in particular, the pipeline discipline we’re seeing now will be a key determinant of long-term performance.”

Colliers’ top 10 ranking overall is:

1. Edinburgh
2. London
3. Oxford
4. York
5. Glasgow
6. Bath
7. Inverness
8. Birmingham
9. Liverpool
10. Manchester