Edinburgh named number one UK city for hotel development

05 March 2018 by
Edinburgh named number one UK city for hotel development

Edinburgh has topped the Colliers International's third UK Hotels Market Index (UKHMI), making it the "hot spot" for hotel development and acquisition in the country.

The ranking was attributed to strong occupancy levels and average daily rate (ADR) growth in 2017, resulting in a four-year upward revenue per available room (revpar), trend combined with constrained new supply.

Bath ranked second as a result of strong ADR performance, combined with a lower active pipeline, while Belfast was in third place due to the city's robust and positive four-year revpar growth and low land site prices.

Marc Finney, head of hotels and resorts consulting at Colliers International said Bath and Belfast have "really upped their game in the last year to make it into the top five" despite "failing to feature in the top 10 last year."

Manchester fell out of the top 10 having experienced minimal revpar growth in 2017, as well as a relatively large development pipeline and increasing land costs.

New to the top 10 list for the first time is Hull and Plymouth.

The UKHMI used nine key performance indicators to score 34 UK locations. they included land site prices; build costs; market appetite; valuation exit yields; room occupancy; average daily rate; room occupancy rates; four year revpar trend; active pipeline as a percentage of current supply; and construction costs.

Top Ten UK Hot Spots for Hotel Investment and Development:

  1. Edinburgh
  2. Bath
  3. Belfast
  4. Cambridge
  5. Bristol
  6. Cardiff
  7. Plymouth
  8. London
  9. Oxford
  10. Glasgow

Hotel values grow by 3.9% across Europe in 2017 >>

SACO to expand Locke design-led aparthotel brand in six locations >>

Carlson Rezidor rebrands as Radisson Hotel Group and launches premium collection >>

Videos from The Caterer archives

Are you looking for a new role? See all the current hospitality vacancies available with The Caterer Jobs

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking