EDINBURGH’S burgeoning popularity as a tourist destination has sparked a major investment in new hotel accommodation in the city.
Around 2,250 new hotel rooms are to be added to the city centre in the next three years, increasing room capacity by nearly 17 per cent.
The expansion plans have been highlighted by research commissioned by CDLH, the independent hospitality surveyor, which believes the pipeline of developments is unlikely to impact the yield growth achieved by existing hotel operators, based on current market conditions.
The continuing decline in the pound since the Brexit vote is credited as a key factor behind the city’s attractiveness among tourists from overseas.
Projects under development include a 100-bedroom, new-build hotel in the city’s Market Street, which has been acquired by Carlton Hotel Collection from developer EDI Group. It is due to open in 2019. Carlton has the same ultimate owner as Glendola Leisure, which owns the Waxy O’Connor’s pub in Glasgow and Frankenstein in Edinburgh.
CDLH director Alan Creevy said: “Edinburgh is booming with occupancy rates consistently well in excess of 80 per cent and high net achieved room rates above £110. Whist our research indicates a growth rate going forward of around 5.5% per annum in the number of letting bedrooms, this is something that can only be welcomed by operators to enhance the popularity of the city.
“The growth in bedroom numbers is clearly a result of the popularity of the city and the constant increase in demand which has, undoubtedly, been enhanced with the decline in the UK pound, increase to staycations and significant influx of overseas visitors. Edinburgh has Scotland’s busiest tourist attractions, the world-renowned festival and Hogmanay celebrations and, of course, remains a powerful commercial city”.
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