Edinburgh Tops UK Hotel Market Index as Scotland's Hospitality Boom Continues
Edinburgh has taken first place in the 2025 Colliers UK Hotel Market Index, with Scottish cities performing strongly across the ranking.
The capital recorded occupancy of 85%, a 10% rise in average daily rate compared with 2023 and a 13% increase in revenue per available room (RevPAR). Colliers attributes this to strong tourism, major events such as the Edinburgh Festival Fringe and steady international demand throughout the year. Marc Finney, Head of Hotels and Resorts Consulting at Colliers, says the city's ability to achieve premium rates from both leisure and business travellers, combined with a limited development pipeline, makes it an ideal location for investors.
Glasgow climbed four places, with RevPAR up almost 9% in 2024 on the back of solid occupancy, rising rates, a busy events calendar, strong corporate demand and relatively favourable build costs.
Inverness is also highlighted as a rising market, with RevPAR growth of 10% over the past year. As the gateway to the Highlands, it is benefiting from demand for nature-based and experiential tourism, and its limited pipeline is drawing investor interest in boutique and luxury hotels.
Hotels analyst Cory Latge says that, with Edinburgh leading and Glasgow and Inverness rising, Scotland offers a range of opportunities for hotel investors.
