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
Birmingham and Cambridge have emerged as two of the UK’s fastest-growing hotel markets, according to the Colliers UK Hotel Market Index 2025 Top 10.
Birmingham has climbed 11 places to rank ninth, while Cambridge has risen by 17 spots to rank tenth against the 2024 analysis.
Both cities have benefited from healthy occupancy levels and strong Average Daily Rate (ADR) growth, according to Colliers, signalling a favourable market for hotel investors and developers.
The latest ranking highlights that Birmingham’s hospitality sector continues to gain momentum, driven by a strong events calendar as well as increasing corporate travel and regional regeneration and infrastructure investments, including the impact of HS2 development and the Commonwealth Games legacy.
Meanwhile, Cambridge has experienced a surge in demand driven by international appeal for both students and tourists, as well as corporate travellers. The city’s high ADR growth reflects this strong demand, and with limited new hotel supply entering the market, existing hotels are capitalising on the steady flow of visitors.
Marc Finney, head of Hotels and Resorts Consulting at Colliers, said: “The upward movement of Birmingham and Cambridge in our index is driven by key market fundamentals, including strong RevPAR growth and a relatively low active pipeline. Birmingham continues to benefit from its expanding infrastructure and event-driven demand, while Cambridge’s reputation as a tourist hub and world-class research centre ensures sustained accommodation needs.
“With limited new supply entering these markets, existing hotels have been able to maintain strong performance levels. Reinforcing their potential appeal to investors looking for stable and growing hotel markets.”
The Colliers UK Hotels Index ranks cities against hotel performance metrics, alongside build costs, land prices, as well as active development pipeline in the sector.
The top ten for 2025 are:
Elle Newsum, hotel advisory Consultant at Colliers, added: The latest rankings highlight the diverse growth across the UK hotel market, with cities benefiting from a strategic mix of business, leisure, and academic travel. The cities that are demonstrating strong growth potential, with carefully managed development pipelines that allow for expansion without the risk of oversupply are ranking higher in our analysis than those facing over supply, such as Belfast for example. Our analysis highlights the cities where the market would support further investment and development opportunities.”
