Global real estate advisor, Colliers International, recently launched its second UK Hotels Market Index and reported that Chester came out on top.
Colliers analysed 34 locations across the UK, ranked to determine the ‘hot spots’ for hotel development and acquisition across the country. The city’s high position is mainly due to good occupancy levels, a rising revenue per available room (RevPAR) trend and a low pipeline of new construction.
The report uses nine Key Performance Indicators (KPIs) to score each of the 34 locations a figure from one to five (one being the lowest and five being the highest). The determining indices include land site prices; market appetite; valuation exit yields; room occupancy; average daily rate; room occupancy rates; four year RevPAR Trend; active pipeline as a percentage of current supply and construction costs.
The ratings are then consolidated into a single figure and ranked to show which markets are hot and which are not in terms of a desirable location for investors to acquire an existing hotel or develop a new one.