News: Bristol top ten hot spot for hotel development
The latest Colliers International UK Hotels Market Index has found Bristol is one of the UK’s top locations for hotel investment. The city ranked fourth behind Oxford, York and Chester, up from 12th last year.
Hotels director at the Bristol office of Colliers International Peter Brunt commented: “Bristol has really upped its game in the last year to make it into the top five. Of course, this is a general market index and site specific factors will lead to significant variances but the data demonstrates that London is not the only city that investors should be watching and offers a credible indication to influence their decision making process.”
During 2016 Bristol saw the opening of the upmarket Harbour Hotel in two former banks on Corn Street, and a five star hotel is scheduled to open nearby at the end of 2017 in the former Guildhall building on Broad Street.
The nine key performance Indicators used in the Colliers International UK Hotels Market Index, which was launched in 2016, are land site prices; build costs; market appetite; valuation exit yields; room occupancy; average daily rate; room occupancy rates; four year RevPAR Trend and active pipeline as a percentage of current supply and construction costs.
Marc Finney, head of hotels & resorts consulting at Colliers International, added: “London is by far the largest market with almost as much supply as all of the other markets combined and has recently been a star in terms of revenue per available room. However, it is now only ranking in position 12 in our index due to slow growth in 2016, high construction costs and high land values.”