Edinburgh remains the most attractive hotel investment destination in the UK outside of London for the fourth year in a row, according to Deloitte’s latest European Hotel Investment Survey.

For the fourth consecutive year, almost half of respondents identified Edinburgh as the most attractive hotel investment destination in the UK outside of London.

Manchester (39%) retained second-place, with university towns Cambridge (30%), Oxford (29%) and Bath (13%) completing the top five.

Nikola Reid, director and head of UK hospitality at Deloitte, said: “The Regional UK market remains in good health and continues to attract overseas investors, particularly those looking to take advantage of the recent currency devaluation and flourishing leisure demand.

“Edinburgh and Manchester are robust hotel markets with strong occupancy levels and have a track record of absorbing new supply.

“Appetite for hotel investments in the UK university towns of Bath, Oxford and Cambridge is not surprising due to high barriers to entry and their strong leisure appeal in the wake of tourism from overseas while the pound remains weak.”

More than two-thirds of respondents (69%) cited Brexit as the biggest risk to the UK hotel industry, followed by slow economic growth (48%) and a shortage of skilled labour (38%).