SCOTLAND’S capital city has been revealed as the number one ‘hot spot’ for hotel development in the UK in a report by property firm Colliers International.
Edinburgh came out on top in the company’s UK Hotels Market Index, a study of 34 locations across the UK which ascertains the best performing towns and cities for hotel growth and acquisitions across the country.
Up four places from the previous year, Edinburgh placed first due to robust occupancy levels and average daily rate growth, causing a fourth straight year of rising revenue per available room.
According to the report, the average daily rate in the capital rose from £94 in 2016 to £103 in 2017, while 2111 new rooms are expected to enter the city’s hotel market over the next two years.
Alistair Letham, a director in the UK hotels agency team at Colliers International in Scotland, said: “Apart from London, Edinburgh is the most popular city for visitors in the UK. “It is therefore of little surprise that this is reflected in the popularity of Edinburgh as a hot-spot for hotel development.
“This is further augmented by Edinburgh’s role as an important commercial, financial and political centre, which helps drive demand.
“The continuing growth in passenger numbers at Edinburgh Airport, alongside the ongoing worldwide popularity of Edinburgh as a ‘festival city’, is a further indicator of its strength.”
The report also demonstrated consistent year-on-year growth for the UK sector with revenue per available room increasing by 3.8%.
Glasgow was the only other Scottish location to feature in the report’s top ten hot spots for hotel development and investment.
Scotland’s largest city was named fifth in the market for hotel performance in relation to the costs of development.