Sales of Scottish hotels are up on last year and outstripping the long-term average.
Investment into hotels reached £110 million in the third quarter, up from £70m in the previous quarter, marking a 150 per cent uplift on the five-year quarterly average of £44m.
Colliers said in its Scotland Snapshot report that "hotel investment in Scotland continues to perform strongly in 2024".
The latest figures mean that the year-to-date total stands at £200m, 18 per cent above the corresponding 2023 figure. Colliers also notes that it is seeing interest "not only for larger hotels in built-up areas, but also for leisure-based hotels in popular locations".
Colliers completed another off-market sale for Solley Hotels, selling Pitbauchlie House Hotel in Dunfermline to London-based Smar Hotels.
The deal marked Colliers’ third sale for Solley Hotels in Scotland this year, in addition to a number of other hotel deals across the region in recent months.
Julian Troup, head of Colliers UK hotels agency, said: “These latest figures show that we’re continuing to see robust demand for hotel assets north of the Border, with Scotland’s popular cities and stunning landscapes making it a desirable market for those looking to invest in UK regional hotels. Earlier this year our Hotel Market Index positioned Edinburgh as the top market in the UK, with Inverness and Glasgow also featuring in the top 10, reinforcing Scotland’s appeal as a sought-after location for investors.”
READ MORE:
- Landmark hotels in Highland towns sold in major deal
- Family sells historic hotel to new Scottish market player
- Hotel welcomes over 60,000 guests in first year
The report from Colliers notes that investment activity across all asset classes within Scotland rose to £380m in the third quarter, with a year-to-date total of £1.1 billion, in line with 2023 figures.
Cross-border capital has accounted for 28 per cent of all activity by value so far this year, slightly below last year’s share of 33 per cent.
Oliver Kolodseike, director in the research & economics team at Colliers, said: “The overall landscape for Scotland presents a mix of challenges and opportunities, highlighted by fluctuating yields and sector-specific dynamics. We expect investor confidence to improve as interest rates are cut further over the next 12 months, resulting in a pick up in transactional activity.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel