The property and investment firm found that total revenue in the sector increased by £30m in 2019.
Colliers also found that demand for rooms increased at a faster rate of supply between 2014 and 2019, despite warnings from the Edinburgh Hotels Association (EHA) that there was a “slump” in room demand in the city.
The firm’s analysis examined the total number of rooms in supply, the market average occupancy, the number of rooms sold, the average price at which they were sold and total accommodation revenue generated by the city’s registered hotel stock during this period.
Total revenue was up to £505.7m from £474.9m between 2018 and 2019, while the number of rooms in supply grew to 16,579 from 15,131.
Meanwhile, occupancy in 2019 was 1.6% higher than the 80.4% recorded in 2014, while the average room rate was up from £86.32 and the number of rooms in supply increased 37% from 12,096.
Despite this, occupancy decreased slightly to 82% from 82.9% during 2019 against the year prior, while the average room price fell to £101.92 from £103.72.
Marc Finney, head of hotels and resorts consulting at Colliers International, said: “While I’m not saying the performance of Edinburgh’s hotel market last year was something to rejoice, it was relatively stable despite the background of economic slowdown related to political turmoil in Westminster and Brexit.
“The fact the Edinburgh market generated £30m more from hotel accommodation revenue in 2019 compared to 2018, against a negative economic backdrop, is a strong result.”
He added: “There seems to have been an awful lot of talk recently about how the Edinburgh market is over-supplied and how Scotland is a victim of over-tourism. The fact that some of the strongest statements have come from the EHA does that organisation very little credit.
“I believe they should be rejoicing at the success of the Edinburgh market against a difficult backdrop and perhaps be a little more welcoming to their new potential members.”