Edinburgh has topped Colliers International’s latest UK Hotels Market Index, moving up four places in 2017 from the previous year.
Its high position is mainly attributed to strong occupancy levels and average daily rate (ADR) growth in 2017 combined with constrained new supply.
The UK Hotels Market Index is an analysis of 34 locations across the UK, ranked to determine the ‘hot spots’ for hotel development and acquisition across the country.
The annual report, which is in its third year, paints a positive picture for the hotels sector. Regional markets have continued to catch up to London in terms of their attractiveness to investors, with cities such as Hull and Plymouth entering the list of top 10 ‘hot spots’ for hotel development and acquisition in the UK for the first time in 2017.
Alistair Letham, a director in the UK hotels agency team at Colliers International in Scotland said: “Apart from London,Edinburgh is the most popular city for visitors in the UK. It is therefore of little surprise that this is also reflected in the popularity of Edinburgh as “hot-spot” for hotel development. This is further augmented by Edinburgh’s role as an important commercial, financial and political centre, which helps drive demand. The continuing growth in passenger numbers at Edinburgh Airport, alongside the ongoing worldwide popularity of Edinburgh as a ‘Festival City’, is a further indicator of its strength.”