Manchester is booming – so could your investment income

Manchester is one of England’s most exciting cities. It’s the birthplace of the Industrial Revolution. It’s the home city of two of the country’s most successful football teams. And it’s got a vision that is looking towards the future. HS2 will make the city an even more significant cog in the fabric of the UK’s economy than it is already.

The city centre, regenerating at a staggering pace, is packed with restaurants that offer foods from around the world. Its eclectic nightlife is centred on bars, clubs, and bistros. There are art galleries, museums, and visitor experiences to rival any other town or city in the UK.

From traditional market town centres to rural villages and beautiful countryside, and an amazing network of waterways, Manchester and its surrounds has something to offer every taste. It’s little wonder, then, that Manchester’s visitor economy is not only one of the largest in the UK, but is also booming.

In this article, you’ll discover why Manchester is the place for investors in the UK’s visitor economy, and how you can invest in it with a hands-off investment and immediate 8% yield.

They said that Brexit and terrorist attacks would punish Manchester… how wrong they have been

The terrorist attack in Manchester of earlier this year has not had the disastrous effect that many predicted. In fact, the effect was first muted and then non-existent. In August, according to consultants AlixPartners and AM:PM, in the first week after the Manchester bombing, flight bookings were down by only 4%. Visitor numbers have since recovered and increased.

Hotel occupancy rates in Manchester during the first half of the year were ahead of all northern cities, well above the UK average, and growing faster than the record growth seen in 2016. While there was a dip immediately after the terrorist attack, by August occupancy rates were as high as in 2016 – and this is with increased hotel room supply.

A similar story has been witnessed with Brexit. The EU Referendum vote to leave was predicted to crash the economy. But we’re seeing an economy that is still growing, and a visitor economy that is booming. Nowhere is this more evident than in Manchester.

At the Annual Hotel Conference, held in Manchester in October, Brexit was the major talking point. But it was noted that the visitor economy has boomed, especially outside London:

“Regional UK performance has gone platinum,” said David Bailey, Senior Director at CBRE Hotels, which reported that provincial occupancy has climbed to 77% year to date. “Hoteliers have converted continued demand growth into rate and RevPAR (revenue per available room) uplifts of 3.4% and 5.6%, respectively.”

In Manchester, international tourist numbers surpassed projections for 2020, helping RevPAR grow by 7.1%.

Just how big is Manchester’s visitor economy?

The head of Marketing Manchester, Sheona Southern, told the annual Greater Manchester Tourism Conference held in October 2017 just how important the visitor economy is to Manchester. It is worth more than key sectors such as financial and professional services, life sciences and creative, digital and tech. Here are the staggering numbers:

Greater Manchester’s tourism sector is worth ￡7.9 billion

It supports 94,000 jobs

It attracts 119 million visitors per year; 11 million that stay, and 108 million day visitors

Tourism and business tourism is booming in Manchester

Southern said, “Greater Manchester’s tourism sector is one of extraordinary success, which is often overlooked and taken for granted when people talk positively about how the city is moving forward and developing.

“The sector grew and supported economic recovery in Greater Manchester after the 2008 recession, and it is composed predominantly of SMEs that make the region such an interesting and diverse place to visit, invest, meet and study.

“Despite challenges this year, the sector has bounced back with some great successes. Thanks to Manchester Airport’s growth and continued success over the past five years, international visitors reached 1.4 million in 2016, which already exceeds the target set in the 2020 Tourism Strategy.

“And at a wider regional level, there has also been a 7% increase in the number of international visitors across the North West in the last year.

“Business tourism, specifically the conference and events subsector, is now worth ￡81 million and supports 21,900 jobs. So far this year, Marketing Manchester and its partners have won 20 conferences, which will bring 11,635 delegates and ￡21.7 million to the region over the coming years.

“The value of these visitors, not just in monetary terms but also regarding profile and investment opportunities, cannot be overestimated.”

The China effect

Thanks to the direct flights between Manchester and Beijing, trade and tourism between the north of England and China is booming, too. A study by Steer Davies Gleave discusses ‘The China Dividend’ delivered to the Northern Powerhouse.

Jake Berry MP, Minister for the Northern Powerhouse and local growth, said: “In just one year the Hainan route has brought such significant rewards to the Northern Powerhouse that I feel there is a real appetite in exploring launching airline routes from Manchester to other regions in China.

Dr Sun Dali, Consul General of the People’s Republic of China for the North of England, said: “After one year of this flight, we have seen continued growth in trade and communication between China and the north of the UK and I hope that intercommunication between the UK and China continues to encourage more cooperation between China and the North of England.

The report highlights the growth in passenger numbers, exports, investment projects, students, and tourism.

Visitors need hotel rooms

The growth in the visitor economy hasn’t been met with growth in the number of available hotel rooms. While the number of hotel rooms in Manchester is forecast to grow by around 5% per year, this is some way below the increase in tourists to the area in recent years. Supply of quality hotel rooms could help to increase occupancy rates and room rates even further over the coming years, boosting RevPAR even higher.

It’s a great time to invest in Manchester’s booming visitor economy, which is benefitting from:

An incredible and unique tourist offering

Increased trade and tourism from China

The lower level of the pound increasing spending power for international visitors to the UK

Higher numbers of UK residents holidaying in the UK

Visitor numbers are booming, occupancy rates are rising, and RevPAR is increasing.

How can you take advantage of Manchester’s booming visitor economy?

Right now, we’ve been able to secure what we think is the perfect investment opportunity for property investors who want to benefit from Manchester’s amazing tourism dynamics. It’s a five-year fixed term investment in the Comfort Inn in North Manchester.

With an investment amount from ￡80,000, a room in this hotel offers an 8% annualised income from month one (That’s an 8% net rental return per room). You won’t have any ownership fees, and will also benefit from a 110% buyback at the end of the fixed term.

If you want great monthly income, capital growth, and in a local economy that is booming, then this hands-off investment in hotel rooms could be the ideal solution. For more information, contact us today on +44 (0)207 923 6100 to book a 20-minute meeting to discuss this exciting hotel room investment opportunity.

Live with passion

Brett Alegre-Wood

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