The hotel market of London was able to re-establish itself as a top location for investment in 2017, as a massive influx of tourists boosted a hotel boom.
According to Colliers International, a property adviser, the revenue per available room (RevPAR) and the average daily rate (ADR) in London, which are considered as the key measures of profitability, was the highest in the United Kingdom in 2017.
The number places the capital back into the top 10 hotel locations in the United Kingdom on the Colliers ranking of hot spots for investment and development.
The head of hotels and resorts and hotels consulting at Colliers, Marc Finney, stated: “London has climbed back into the top ten, mainly because of the capital city’s recovery in ADR performance for 2017.
“The capital continues to be the largest market, and in terms of RevPAR, it is still the top performing market.”
The hotel hot spots for hotel investment and development include Edinburgh, Bath, Belfast, Cambridge, Bristol, Cardiff, Plymouth, London, Oxford, and Glasgow.
London lost out to other destinations in the United Kingdom because of the higher supply of new openings. Meanwhile, the likes of Bath and Edinburgh both have constrained pipelines, driving up the price of rooms.