Hotel markets in key regional cities are set to take off as increasing supply and new mixed-use developments tempt businesses and tourists, according to property consultants JLL.
Leeds, Birmingham and Edinburgh have all seen increased occupancy rates over the past year as a combination of a buoyant business environment and weak sterling creates demand from corporate and leisure visitors.
According to JLL, 566 new hotel rooms in Leeds are expected to open next year which will be added to the current supply of circa 6,000 rooms.
JLL said the city’s hotel pipeline is targeting each end of the spectrum with a strong focus on budget and four-star properties.
Harry Hawksby, director in JLL’s hotels and hospitality group in Leeds, said: “As corporates expand their HQ reach beyond London and the UK becomes a more affordable and accessible place to visit for overseas tourists, we are seeing strong growth in the hospitality sectors across the UK regions.”
While UK hotel investment transactions in the first half of 2016 declined compared to the same period in 2015, the regional UK market secured the vast majority of total volumes at approximately £1.1bn, including the New Ellington in Leeds.