Edinburgh has taken the top spot in the 2025 Colliers UK Hotel Market Index, reinforcing its status as one of the most attractive hotel investment locations in the UK.
With occupancy averaging 85%, and double-digit growth in both Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR)—up 10% and 13% respectively—Edinburgh continues to deliver strong returns. The city’s global appeal, bolstered by year-round tourism and internationally recognised events like the Edinburgh Festival Fringe, is keeping demand high and development interest strong.
Marc Finney, Head of Hotels & Resorts Consulting at Colliers, said, “Edinburgh’s hotel market continues to demonstrate remarkable resilience and investment appeal. The city’s ability to drive premium rates, coupled with its year-round demand from both leisure and corporate travellers, makes it a great destination. With a constrained development pipeline currently, this would be an ideal location for investors to consider.”
Glasgow has also seen notable progress, rising four places in the rankings. Strong RevPAR growth of nearly 9% in 2024, a strong events calendar, and healthy corporate demand are driving performance. Combined with competitive build costs, Glasgow is becoming an increasingly appealing proposition for investors seeking growth beyond the capital.
Inverness, meanwhile, has emerged as one of the UK’s rising regional markets, achieving 10% growth in RevPAR over the past year. Known as the gateway to the Highlands, the city is attracting a growing share of nature-led and experiential travellers. With limited new development and strong occupancy, interest is mounting in boutique and upscale opportunities.
Cory Latge, Hotels Analyst at Colliers, added, “With Edinburgh leading the UK and Glasgow and Inverness climbing the ranks, Scotland is proving to be an investment powerhouse in the hotel industry. Whether in the capital’s high-performing luxury market, Glasgow’s growing corporate and leisure demand, or Inverness’s rising star appeal, the country offers opportunities for hotel investors.”
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