Glasgow tops table for hotel deal value last year

GLASGOW was the most active city in Scotland last year in terms of hotel investment, and third-top in the UK outside London, analysis has revealed.

In its UK Hotel Capital Markets Investment Review 2020, property consultancy Knight

Frank highlights around £260 million of hotel deals last year in Edinburgh, Glasgow, Aberdeen, and Inverness.

It calculates that, in Glasgow, £170m was spent across nine transactions in 2019, covering a total of more than 1,700 rooms.

Knight Frank noted Glasgow’s desirability as a tourist and events destination. It flagged the COP 26 United Nations climate change conference, which will take place in the city in November, as an example of the scale of event that Glasgow was able to attract.

The property consultancy also flagged further significant new hotel openings planned in Glasgow in coming years.

John Rae, head of

Knight Frank’s Glasgow office, said: “It’s been a strong year for investment in Glasgow hotels – a reflection of the fact that it is emerging as a highly desirable tourist and events destination. The arrival of the COP26 United Nations climate change conference later this year is indicative of the scale of events that Glasgow can now host, and it is a huge opportunity to highlight all the city has to offer.”

He added: “There are a substantial number of hotel rooms to be added in Glasgow over the next few years, with a range of well-known and boutique operators confirmed or planning new premises in the city. As they come on stream, we expect hotel investment activity to remain strong in the years ahead as investors increasingly look to alternative property assets.”

Knight Frank noted, beyond Edinburgh, Glasgow, Aberdeen and Inverness, 12 assets consisting of around 900 rooms had changed hands in deals totalling about £115m. It flagged the sale of the Fairmont St Andrews as the biggest deal of the year in the Scottish “secondary’ market”.