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Edinburgh to see 13% increase in hotel room stock

22 July 2011
Edinburgh to see 13% increase in hotel room stock

Edinburgh is attracting an increased number of hotel groups, drawn in by its appeal as one of the UK's most diverse and popular tourist destinations, research has suggested.

A report by hotel consultancy HVS London found that the Scottish capital is to see a 13% increase in hotel rooms over the next three years, with chains such as InterContinental and Marriott as well as Travelodge and Premier Inn set to launch new properties.

Other groups, including Jumeirah and Hyatt, are also thought to be looking for hotel sites in Edinburgh, according to the report.

"International brands with hotels already in the city are adding to their portfolio as well as new entrants, which confirms that investors are seeing the potential for future growth in Edinburgh," said report author Lara Sarheim, associate director at HVS London.

"The city benefits from a mix of leisure and business tourism so hotel performance remains strong all year round," added Sarheim.

According to the report, occupancy and average room rates in Edinburgh have shown positive growth in 2010 and into 2011, with revpar at the city's hotels up 6.1% in the 12 months to April 2011. Full-year occupancy in Edinburgh in 2009 and 2010 was the second-highest in Europe, beaten only by London.

Growth in London and provincial hotels stronger than forecast >>

London hotels continue to outperform those in the provinces >>

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