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:
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