Edinburgh maintained its position in 2025 at the top of the Colliers UK Hotel Market Index, while Inverness ranked in joint second place with Oxford, and Glasgow rose to fourth.
“Edinburgh has maintained its position at the top of our index, primarily due to its exceptional performance in both occupancy and ADR (average daily rate) during 2024, as well as its strong RevPAR (revenue per available room) growth compared to 2023, making it a highly sought-after market for investment,” said the Colliers teport.
“Oxford and Inverness continue their ascent up the ranks, jointly ranking in second place, predominantly due to double digit RevPAR growth in 2024, coupled with a limited pipeline under construction.
“Glasgow and Bath have also climbed the ranks as a result of achieving solid performance metrics during 2024. Whilst Glasgow benefits from favourable build costs, Bath has a limited development pipeline.
“Birmingham and Cambridge enter the top ten this year, marking the continued resurgence of international and corporate travel during 2024, with both cities recording healthy RevPAR performance levels.”
London maintained its ranking as number seven amid continuously high land prices.
“Given that our index punishes high land and construction costs, market size, sluggish hotel growth in recent years and a strong active pipeline, some markets will rank lower than expected,” said the report.
“This is a general market index and site specific factors will lead to significant variances.”