Colliers International’s latest UK Hotels Market Index shows continued year on year growth for the hotel sector, with revenue per available room (RevPAR) increasing by 3.8%; significantly ahead of GDP growth.

The annual report, which is in its third year, paints a positive picture for the hotels sector. Regional markets have continued to catch up to London in terms of their attractiveness to investors and cities such as Hull and Plymouth entered the list of top 10 hot spots for hotel development and acquisition in the UK for the first time in 2017.

Edinburgh topped the Index, moving up four places in 2017 since the previous year with its high position mainly attributed to strong occupancy levels and average daily rate (ADR) growth in 2017, resulting in a four-year upward revenue per available room (RevPAR) trend combined with constrained new supply.

Bath ranks second, moving ten places up, as a result of strong ADR performance, combined with a lower active pipeline, and Belfast came third.

Marc Finney, head of hotels & resorts consulting at Colliers International, said: “Cities such as Bath and Belfast have really upped their game in the last year to make it into the top five, despite failing to feature in the top 10 last year.”