New UK Hotels Market Index Launched by Colliers

Posted on 30 March, 2016 by Chris Grigorovsky

The Hotel team of Colliers International has now launched its inaugural UK Hotels Market Index, which has analysed 36 locations across the UK in order to find out the ‘hot spots’ for development and acquisition.

Hotel in Cardiff Bay

Hotel in Cardiff Bay

There are nine KPIs being used in the report, including land value, construction costs and occupancy rates. Each of the 36 locations are being scored from one to five, with five being the highest. Consolidated into a single figure, the scores are then ranked based on whether or not it’s a desirable location for investors.

Commenting on the new index, Marc Finney, Head of Hotels & Resorts Consulting at Colliers International, said: “High land prices in London are causing investors to look outside of the Capital for opportunities to spend their cash. As such, we are increasingly being asked by our hotel investor and operator clients which UK regional cities offer the best development opportunities.

“Together with our regional experts, who know the local UK markets exceptionally well, our Hotel Market Index gives us something more than anecdotal evidence through which to advise our clients.

“With the Index we are able to couple our on the ground expertise with a more scientific formula to demonstrate the key performance indicators which should be influencing an investor’s decision making process and rank the opportunities according to their own investment criteria.”

The top 10 hotspots are as follows:

1. Cardiff
2. Manchester
3. Leeds
4. Chester
5. Liverpool
6. York
7. London
8. Edinburgh
9. Brighton
10. Bath

Cardiff came top due to its low active pipeline, low build costs and strong hotel performance of the last three years.

Manchester ended up second due to good investment and valuation parameters, as well as substantial hotel performance. It’s known as a popular city for the business and leisure trades.

The Northern Powerhouse is currently in a strong position for future hotel development as out of the top six locations; Leeds, Manchester, York, Chester and Liverpool are within this area.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions