UK's number one for hotel development

Published: 06 March 2018

Edinburgh has topped Colliers International’s latest UK Hotels Market Index, moving up four places in 2017 from the previous year, with its high position mainly attributed to strong occupancy levels and average daily rate (ADR) growth.

Colliers’ index shows continued year on year growth for the sector, with revenue per available room (RevPAR) increasing by 3.8 percent; significantly ahead of GDP growth. The annual report, which is in its third year, paints a positive picture for the hotels sector.

Apart from London, Edinburgh is the most popular city for visitors in the UK. It is therefore of little surprise that this is also reflected in the popularity of Edinburgh as “hot-spot” for hotel development...

Alistair Letham, Director, Colliers International

 

The analysis uses nine key performance indicators (KPIs) to score, with a figure from one to five (one being the lowest and five being the highest).

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...

Full story via Scottish Financial News

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