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The Scottish Property Investment Review 2016, developed by Scottish Development International 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.

Strong capital growth

The research shows that a strong level of capital growth helped Scottish leased hotels outperform the retail and office sectors and the majority of European hotel markets. 

The review shows that Scottish leased hotels performed well with a return of 12.6% year on year in 2015 and were buoyed by another year of strong capital growth. A capital growth of 13.1% was recorded for the period, mainly by yield strengthening, as initial yields compressed to near 2007 levels.

Strong income return

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.

The 5-year annualised return for Scottish leased hotels stood at 10.1% per year at the end of 2015, outperforming all 12 European hotel markets forming part of the MSCI analysis – with the exception of the ‘Rest of the UK’ hotels (for example, London).

Read the full Scottish Property Investment Review 2016

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