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Scottish Hotels Performance Report 2016

Scotland’s hotel sector continues to thrive as the 2016 MSCI report shows a strong performance for Scottish hotels and impressive returns for investors.

The Scottish Property Investment Review 2016, which we developed in association with MSCI, shows a strong performance for Scottish leased hotels and impressive returns for investors, with a return of 12.6% year on year in 2015.

The research shows that a strong level of capital growth, with 13.1% growth recorded for the period, helped Scottish leased hotels outperform the retail and office sectors and the majority of European hotel markets.

Strong income return, and the fact that capital values remain discounted, has made assets in Scotland a competitive investment compared to England, especially London, and most other European markets.

Read the full report

Balmoral clock tower Edinburgh

High hotel occupancy

Scottish cities have some of the highest hotel occupancy rates in Europe.

Since 2011, Scottish hotels have returned an average of 10.1% year-on-year, outperforming all other European markets. This demand has significantly improved the hotel sector’s revenue per available room in recent years and is expected to continue to rise, with a projected growth of 5% per year over the next six years.

Average hotel occupancy levels were 80% and 82% for Glasgow and Edinburgh respectively in 2016, in turn giving investors a healthy return on their money.

Don’t take our word for it though. Watch industry leaders from global brands such as Hilton, BridgeStreet Global Hospitality and Accor Hotels talk about why they believe Scotland is a great place to do business.

Healthy hotel demand

Scottish cities are building on the success of world-class events and major infrastructure projects.

The strength of the business and leisure tourism markets in Scotland’s cities drive year-round occupancy and high room rates. The demand for additional accommodation, particularly 4-star and above, presents significant opportunities for accommodation providers, developers and investors.

From Edinburgh’s year round tourism economy, to Glasgow’s UK-leading MICE market (meetings, incentives, conventions and exhibitions) and Dundee's £1 billion investment in the waterfront area, Scotland’s cities offer a diverse range of options for development.

Our support

Our role is to make investing, setting up and succeeding in Scotland as easy as possible.

We have supported companies to invest over £330 million in capital expenditure to build new hotels and refurbish existing buildings in the last four years alone. These investments also introduce new business and leisure tourists to Scotland.

We can help you with:

  • Finding the right location – including sites and deals not available on the open market
  • Identifying partners, investors, developers and operators
  • Market intelligence and key performance statistics
  • Liaising with local authorities and Scotland’s government bodies to help project completion
  • An after-care package for inward investments to help business development

We also work in partnership with local authorities in key destinations such as Glasgow and Edinburgh. You can find further information including useful city prospectus guides on their websites:

Visit the Invest Glasgow website 
Visit the Invest Edinburgh website

City accommodation

We connect you to the right people and resources to help your business thrive.


International Sector Head - Graeme White

We have offices in 20 countries, staffed by teams who can talk you through Scotland’s capabilities and the funding support that may be available to you.

Tell us a bit about your business and a specialist from your region or sector will get back to you.

Get in touch with us