City’s hotel values accelerate upward trend

Birmingham’s hotels continue to increase in value, although remains significantly below its pre-recession values.

When meassured in sterling, the value of the city’s hotels increased 5.1% last year, the fourth consecutive year of growth according to analysis by HVS.

However big drops in 2008 and 2010 mean Birmingham hotel values are still to recover from the impact of the global recession.

“Birmingham remains a winner, although it lost some value in euro terms,” said report authors Nicole Perreten and Sophie Perret.

“The percentage of visitors that stay overnight doubled in three years to 45%. The increase in visitation is driven by the leisure segment, attracted by the growing cultural offer.

“The fuller event calendar, improve connectivity and very modest pipeline bode well for the continued development of the city’s hotel performance.”

Hotel valuations, in local currencies (data: HVS):

The report’s authors did note this improved performance is with values measured in sterling.

The weaker pound has affected the relative performance of all UK cities compared to its European rivals, and Birmingham is ranked 30th out of 33 – sandwiched between Edinburgh and London – when 2016 values are assessed in Euros.