Abu Dhabi: Recent research has shown growth in returns for investors as Scottish leased hotels have grown 7.8 per cent year-on-year over the past three years, according to Scottish Development International.
The company, which conducted the research, reported that total returns from Scottish hotels ranked Scotland as the second best market out of 13 European countries in total investment returns in the leased hotel sector.
Scottish hotels reported a total return of 9.2 per cent year-on-year in 2013, almost doubling the sector’s performance in 2012 when a return of 4.8 per cent was recorded.
The Scottish hotel performance followed an improving European trend throughout 2013 when the rest of UK hotels returned 11.4 per cent year-on-year — up from 5.2 per cent in 2012.
Income return for Scottish hotels, at 6.3 per cent year-on-year drove performance, according to the report conducted in collaboration with IPD, a company that provides performance analysis.
Commercial property
Scotland’s travel and tourism sector has attracted investors globally including those from the UAE such as Abu Dhabi Investment Authority.
“Scotland’s commercial property markets witnessed a year of recovery in 2013, with capital values returning to growth for all of the primary investment sectors. Hotels fared even better with a return of 9.2 per cent, outpacing both retail and office properties,” said Colm Lauder, senior associate at IPD.
Meanwhile, Graeme White, head of tourism at Scottish Development International, said that events in Scotland during 2014 like the Commonwealth Games, and the Ryder Cup are shedding the spotlight on the country.
“Over 600,000 visitors attended the Commonwealth Games and Festival 2014 events. Over the nine nights of the Games, hotel occupancy rose by 11.2 per cent in Glasgow, creating the highest July occupancy figures ever,” White said.
