Liverpool’s hotel market continues to flourish, with new figures highlighting the considerable scope for investment in the sector that has helped make recent months a standout period for hospitality growth and bodes extremely well for the months to come.
Published jointly by Liverpool City Council and Liverpool’s Local Enterprise Partnership since 2004, the latest iteration of the Regenerating Liverpool report has showcased the rapid expansion of both consumer and investor appetites in this vibrant city.
Rising occupancy and increased revenues
The last 12 months have been an extremely positive period for the Liverpool hotel sector, with occupancy levels growing throughout 2017 to reach a record high of 78.6 per cent by the end of the year – a rise from the previous year’s result of 76.7 per cent.
Overall, Liverpool remains one of the north-west’s busiest and most popular cities, with weekend occupancy rising even higher to an average of 90.2 per cent. Indeed, this represents sustained growth of just over four per cent for the sector since 2008.
Meanwhile, at the same time as this higher level of demand, the average rate for rooms across the city has also improved during the course of the last year. Hospitality providers achieved an average rate of £74.81 in 2017 – up from £72.19 in the previous year – and saw a peak of £106.64 in April, typically the busiest month of the year.
Furthermore, October 2017 saw the highest ever weekend average room profit (RevPar) at £104.63 – the first time that Liverpool’s RevPar metric has breached the £100 barrier in the report’s history.
The financials of the city’s hotel sector therefore continue to go from strength to strength, with sustained growth during the last year a significant draw for new and existing investors to the area.
Growing investment helping to meet demand
As a result of the city’s ongoing positive returns, investors are now flocking to attractive new projects that are springing up across Liverpool. Indeed, the report showed a total of £21 million was funnelled into new hotel and serviced apartment developments across the city in 2017.
It is a sign of the burgeoning hospitality market overall, as the city witnessed the delivery of an additional 110 hotel bedrooms last year, as well as the opening of 148 new serviced apartments and the creation of upwards of 140 hotel jobs.
A standout project in Liverpool that Experience Invest is proud to showcase is the latest new venture alongside our esteemed partners Elliot Group and PVA Hospitality – the Vincent Hotel and Residence.
Located in Liverpool’s up-and-coming waterfront area at Baltic Triangle, the development offers a total of 306 luxury bedrooms and is a contemporary and stylish addition to the city’s hotels space.
Exciting attractions keep visitors coming back for more
As we’ve seen, the city of Liverpool continues to attract a growing volume of visitors from across the country and around the world, with an array of annual and permanent attractions that make this one of the most bustling and exciting places to visit in the whole of the UK.
With a rich history and unique cultural identity, Liverpool is famous for its innovative music scene, sporting greatness and for generally being a fun place to experience and explore. It is now ten years since Liverpool was named the 2008 European City of Culture – a title has helped to create a lasting legacy.
Upcoming events that will be taking place across the city include the Three Festivals Tall Ships Regatta in May and the Liverpool International Music Festival in July, as well as the China Dream season of festivities that will be running at venues across Liverpool from February to October in celebration of the Chinese culture. Overall, more than one million people visit Liverpool every year, with local events and celebrations adding in excess of £18.2 million to the city’s economy.
In addition, there is also the popular ACC Campus – home to the BT Convention Centre, Echo Arena and Exhibition Centre Liverpool – which is located within just five minutes’ walk of the Vincent Hotel and Residence. It attracted more than 668,000 visitors and delegates last year, with events including live performances from world famous stars Little Mix and Sir Elton John, as well as playing host to the annual Labour Party Conference.
For investors in the Liverpool market, opportunities to maximise their input into an established and growing sector are therefore arguably greater than ever before. Indeed, with fantastic annual events and attractions to keep visitors coming back to this exciting destination, the scope for new hotel activities (and their associated positive returns) continues to increase.