Hotel investment in Scotland continues to perform strongly in 2024, reports Colliers in its latest Scotland Snapshot report, with investment in the sector reaching £110 million in the third quarter of 2024. This figure represents a significant increase from £70 million in the second quarter and is 150% higher than the five-year quarterly average of £44 million.
Year-to-date investment now totals £200 million, a rise of 18% compared to the same period in 2023 and Colliers reports strong interest in both larger urban hotels and leisure-focused properties in sought-after destinations.
Key transactions during Q3 included Bespoke Hotels’ acquisition of the Caledonian Hotel in Fort William, the Great Western Hotel in Oban, and the Pitlochry Hydro in Perthshire – all for undisclosed sums.
Colliers also completed another off market sale for Solley Hotels, selling Pitbauchlie House Hotel in Dunfermline to Smar Hotels Ltd. The deal marked Colliers’ third sale for Solley Hotels in Scotland this year.
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.”