SCOTLAND: LEASED HOTELS GREW 7.8 %

James Morris - Nov 1, 2014
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According to Scottish Development International, a recent research shows that over the past three years, there has been a significant growth in returns for investors as Scottish leased hotels have tremendously grown at 7.8 percent year-on-year. The research goes ahead to report that the total returns from the Scottish hotels have ranked Scotland as the second best market in total investment returns in the leased hotel sector in Europe. 

In 2013, the Scottish hotels reported an overall return of up to 9.2 percent year-on-year. This almost doubled the sector’s previous year (2012) performance which was at 4.8 percent. This was followed by an improvement in European hotels throughout 2013 where the other hotels in the UK reported a return of 11.4 percent year-on-year, an increase from 5.2 percent recorded in 2012. 

According to Colm Lauder, a senior associate at IPD, a company that offers performance analysis, 2013 was the year of recovery for Scotland’s commercial property markets with capital values returning to growth for all primary investment sectors. Hotels experienced a return of 9.2 percent outdoing both retail and office properties. 

According to Graeme White, who is the head of tourism at Scottish Development International, the events in Scotland for example the Ryder Cup and the Commonwealth Games are among the things that are shinning the spotlight on the country in 2014. For example over 600,000 guests attended the Commonwealth Games and during the 9 nights of the event, hotel occupancy increased by 11.2 percent in Glasgow. These two events enabled the growth of the travel and hotel industry in Scotland. 

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