23 May 2017

Inverness beats Edinburgh to top Colliers International’s Scottish Hotel Index

Colliers’ Scottish Hotel Index involves the analysis of five locations across Scotland and ranks them according to nine key indicators, to determine the ‘hot spots’ for hotel development and acquisition across the country. It has found that Inverness is the most attractive market for investors, followed by Edinburgh and then Glasgow, Perth and Dundee, and Aberdeen.

Marc Finney, Head of Hotels & Resorts Consulting at Colliers International, said: “Our Scottish Hotels Market Index shows the changes taking place in the sector. The study in particular, highlights that Inverness is not necessarily the best hotel market north of the border, but it is currently providing the best opportunities in Scotland. Inverness has recorded high levels of demand of around 80% over the past four years, which has enabled ADR to rise by 22% between 2013 and 2016. It is cheaper to acquire hotel sites there, providing investors with much better value for money than, say, Edinburgh.”

Hotel Index

Alistair Letham, the Scottish director in the UK Hotels Agency team at Colliers International, added: “Crucially the index shows that hotel performance is on an upward trend in Inverness, and there is little new stock of guest rooms in development. Despite being expensive, Edinburgh is also on an upward trend and has one of the highest ADR in Scotland and the UK at £93 at the end of 2016. So the capital rightly deserves its position in the UK top ten.”

Collier International

Inverness scored highly and with an overall rating of 3.79, which would put it joint second in the UK, alongside York and behind Chester. Edinburgh is in 5th place in the UK Index.

Inverness led the way in the RevPAR trend, with growth of 8.5%, and also had the highest occupancy rate in the Scottish market with 83.2%.

The city also had some of the cheapest land, alongside Dundee and Perth, and Aberdeen, the smallest active pipeline at under 3% of current room supply, and relatively modest build costs. 

For the full Collier International Hotel infomatic >>