£227 million of hotel investment in Edinburgh
Over five million international and domestic visitors journeyed to Edinburgh in 2024, driving strong hotel occupancy rates.
Research from Knight Frank has found that £227 million of hotel investment took place in Edinburgh from January to September 2025 (74.4% of all hotel investment across Scotland). Investment in hotels in Edinburgh outstripped investment in offices (£212 million), retail (£121 million), and industrials (£28 million). Among the deals struck were the sale of the W Edinburgh hotel to Schroders and the sale of the Bruntsfield Hotel to Dutco.
"Edinburgh continues to grow in popularity as a destination for both international and domestic visitors. The city is a year-round tourist destination – while the festivals are an obvious attraction in the summer, golf, the Six Nations, along with a growing number of conferences, concerts, and other events are all adding to what the city has to offer. With that, the demand for hotel accommodation has been very high and supply remains relatively constrained – although, the conversion of several city centre buildings to hotel and aparthotel use will add to the city’s stock over time. Those market dynamics mean investor demand for hotels in Edinburgh should remain strong.
“The sale of the W hotel earlier this year has been a significant boost to the statistics, but with more stock likely to become available as it comes on stream and the city's visitor numbers stronger than ever, we are likely to see more deals in the remainder of 2025 and into next year.”
- Euan Kelly, capital markets partner, Knight Frank Edinburgh