By Kristy Dorsey

Glasgow’s booming hotel sector is set for a further decade of strong performance as the tourism, commercial and conference markets feed demand for accommodation.

A new report from real estate specialist Avison Young is predicting continued strong occupancy for the next 10 years despite the addition of more than 2,200 bedrooms currently under construction and due to open by 2022. This will take the total number of hotel rooms in Glasgow’s city centre to more than 10,800. Since 2014, the city’s hotels have averaged occupancy levels of around 80%. This has been driven in part by tourism, with overnight stays up by 9.1% during the two years to 2018.

The number of business travellers is also rising as organisations such as JP Morgan Chase, HMRC, Barclays and others have chosen Glasgow to locate or expand operations. This is reflected in the 77% level of pre-lets for Grade A space under construction, with Glasgow having the lowest of Grade A vacancy rate of any of the UK’s major regional cities.

The conference market is a further major contributor, with 3.5% compound annual growth in the number of delegates during the past 10 years.

“This year, COP26 will be a key contributor to Glasgow’s hotel sector and showcase the city on a global stage, ensuring an enduring legacy,” said Andrew Renouf at Avison Young.