Edinburgh remains the UK’s top destination for hotel investment outwith London, according to Deloitte.
Executives and investors from the hotel industry responding to Deloitte’s 2025 European Hotel Industry and Investment survey ranked Edinburgh as the most attractive regional UK city for investment for a fifth consecutive year.
The Scottish capital was ranked most attractive by over half (54%) of respondents, followed by Cambridge (41%), up two places from last year. Oxford and Manchester took third and fourth place respectively, both falling a place in the ranking.
London was the most attractive city for hotel investment in Europe for a third consecutive year, ahead of Madrid and Athens.
Leila Jiwnani, head of hospitality advisory at Deloitte UK, said: “London has secured its position as the most desirable hotel investment destination for a third year running, carving out its reputation as a dynamic capital city for business and leisure travel.
“Edinburgh also continues to demonstrate its popularity as a tourism hotspot, while destinations across Europe see varying levels of interest.
“Investors will be looking for locations that attract a variety of visitors, particularly amidst changing consumer preferences, including a focus on either value or luxury.””
Abhishek Jaiswal, real estate M&A partner at Deloitte, said: “The expectation of more competition for hotel assets going forward is a positive sign for the industry, with a focus on niche and value segments given the middle of the market is stretched.
“While hoteliers look at profitability as a priority, strategic growth will regain importance.”