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Edinburgh and London remain top UK destinations for hotel investment
The 2025 European Hotel Industry and Investment survey by Deloitte has revealed that London is the most attractive city for hotel investment in Europe in the year ahead. It also found that Edinburgh remains the most attractive regional UK city for investment for a fifth consecutive year.
The Scottish capital was ranked most attractive by over half (54 per cent) of respondents, followed by Cambridge (41 per cent). Oxford and Manchester took third and fourth place respectively.
The survey is based on responses from 100 senior hospitality figures from across the world, including owners, lenders, developers and investors.
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. Edinburgh also continues to demonstrate its popularity as a tourism hotspot.
“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.”
Hotels remain the most attractive hospitality asset class for investment in 2026, with ‘luxury’ identified as the most desirable hotel segment for investment by 39 per cent of respondents. Upper upscale’ and ‘economy’ (both 16 per cent) are seen as the second most attractive segments.
Abhishek Jaiswal, real estate M&A partner at Deloitte, said: “The expectation of more competition for hotel assets 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.”
Pictured: Abhishek Jaiswal, Deloitte
