City hotels in Scotland – investment opportunities
The strength of the business and leisure tourism markets in Scotland is reflected by high occupancy rates at city hotels. Scotland is experiencing growing demand for additional accommodation, and this presents significant opportunities in the city hotels sector for hotel companies, developers and investors.
Investing in Scotland’s city hotels sector
Investment opportunities are particularly abundant at the four-star and above level, where demand outstrips supply. Business and leisure tourism are of vital importance to the Scottish economy, and high-quality city hotels play a significant role in the strategy to encourage growth in these markets.
- Scotland saw the best hotel performance of all UK countries in 2006/07, with RevPar growth of 8.9 per cent.
- Recent audits show that 4000 more hotel rooms are required in Edinburgh by 2015 (2000 at four-star or above) and 3000 more in Glasgow by 2010.
Four Scottish cities help illustrate why the city hotels sector is thriving in Scotland.
City hotels in Scotland – Edinburgh
World-renowned festivals, events and conferences are a contributing factor to demand for hotel rooms outstripping supply in Edinburgh. Scotland’s capital city is the most popular holiday destination in the UK after London and the most popular city for international conferences.
Public and private sector organisations are working in partnership, investing billions of pounds to further enhance the city’s tourism offering.
- Business tourism generates around £300million for the Edinburgh economy each year, with delegates spending an average of £364 per capita per day.
- Edinburgh has experienced an increase in overseas visitors of 14 per cent, almost double the rate for the UK as a whole.
- Hotel occupancy rates in Edinburgh will reach almost 80 per cent in 2008.
- New investment opportunities are being created through regeneration projects in the city centre, Leith and Granton Waterfronts and the west of Edinburgh.
City hotels in Scotland – Glasgow
Cosmopolitan and vibrant, Glasgow is Scotland’s largest city. Already a leading conference, event and short break destination, Glasgow’s tourism credentials will be further boosted when it plays host to the Commonwealth Games in 2014.
Major regeneration projects such as the International Financial Services District and £5.6 billion Clyde Waterfront projects reflect a booming business sector – one reason why Glasgow hotels are currently enjoying the highest yield growth of any UK city.
- Glasgow was rated first in the UK Cities category in the Conde Nast Traveller 2006 Readers’ Travel Awards.
- Glasgow’s Tourism Strategy targets a minimum growth of 60 per cent in tourist revenue by 2016, which will take the industry into the £1billion per annum bracket.
City hotels in Scotland – Aberdeen
Situated in north-east Scotland, Aberdeen is the “Energy Capital of Europe” and the modern gateway to Scotland’s castle and whisky country. Occupancy and room rates remain among the highest in the UK, with the city regularly hosting meetings and conferences of up to 2000 delegates.
- Aberdeen had the highest growth of any UK city in 2006/07, with RevPar increasing to 18.6% while Glasgow achieved 13.1 per cent.
City hotels in Scotland – Inverness
Inverness is the 15th most popular UK city amongst overseas visitors. This Highland capital is the fastest-growing city in the UK and an ideal base from which to explore some of the most beautiful scenery in the world. Business tourism is booming and an increasing number of corporate headquarters are locating in Inverness, providing a boost for the city hotels sector.
- Inverness has seen an increase in overseas visitors of 10 per cent, taking the total to more than 250,000 annually.
City hotels are just one of the many thriving Scottish tourism sectors
Find out more about the tourism industry in Scotland and investing in Scottish tourism