Register to get 3 free articles
Register to unlock the article and receive our free newsletter. Join 26,000 other hotel leaders and stay in the know.
Want unlimited access? View Plans
Already have an account? Sign in
The latest UK hotels market data has revealed Edinburgh as the number one ‘hot spot’ for hotel development.
The data is from global real estate advisor, Colliers International’s third UK Hotels Market Index (UKHMI), which analyses 34 locations across the UK to determine the ‘hot spots’ for hotel development and acquisition across the country.
Edinburgh topped the Index, moving up four places in 2017 since the previous year with its high position mainly attributed to strong occupancy levels and average daily rate (ADR) growth in 2017.
This resulted in a four-year upward revenue per available room (RevPAR) trend combined with constrained new supply.
Bath ranks second, moving 10 places up, as a result of strong ADR performance, combined with a lower active pipeline, with Belfast positioned third, improving its ranking by a significant 16 spots.
London also climbed back into the top 10, mainly because of the capital city’s recovery in ADR performance for 2017. The capital continues to be the largest market and in terms of RevPAR, it is still the top performing market.
The determining indices include 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.
The ratings are then consolidated into a single figure and ranked to show which markets are hot in terms of a desirable location for investors to acquire an existing hotel or develop a new one.
Marc Finney, head of hotels and resorts consulting for Colliers, said: “Cities such as 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.
“This year’s index shows the usual suspects and many of the top ten will not be a surprise to those from the sector. However, it does also reveal a number of markets which offer good opportunities but which may not yet feature on everybody’s target lists. It is noticeable how markets like Plymouth and Hull have started to catch up on lost ground during the last cycle.”
The top ten UK hot spots for hotel investment and development:
| Ranking | City |
| 1 | Edinburgh |
| 2 | Bath |
| 3 | Belfast |
| 4 | Cambridge |
| 5 | Bristol |
| 6 | Cardiff |
| 7 | Plymouth |
| 8 | London |
| 9 | Oxford |
| 10 | Glasgow |
