Europe -  Edinburgh, United Kingdom

Edinburgh is the economic, cultural and political capital of Scotland and has consistently been voted one of the most desirable places to live in the world, contributing to its rapid population growth over the last decade. A compact city steeped in history with notable cityscapes and exceptional views, the UNESCO World Heritage Site is a renowned weekend-break destination with an expanding (international) airport and fast rail links on the East Coast Mainline branch. Edinburgh is the second most visited city in the UK, owing to its cultural heritage and strategic location; in 2016, the city welcomed over 4 million visitors, with total bed nights reaching approximately 14.4 million, partly due to the fact that (according to VisitScotland) six of the top 10 most visited attractions in Scotland are located in the capital.

As the UK’s largest financial centre outside of London, the city manages over £500 billion of funds and employs more than 35,000 people in financial services alone. The city is also now home to a thriving technology and software sector, including global companies founded in Edinburgh, such as Skyscanner and Fanduel, that were attracted by proactive local government schemes and a highly skilled workforce. Many of the employees of these companies are graduates from Edinburgh’s universities (around 100,000 students attend the city’s highly ranked educational institutions), which have themselves also helped bolster the city’s profile as an international (executive level) conference destination, with destination agents utilising the multitude of event spaces, including the state-of-the-art Edinburgh International Conference Centre (EICC) strategically located between the office district in Haymarket and the retail centre on Princes Street.

The Edinburgh Festival is made up of a number of different festivals taking place in the city simultaneously. In 2017, the festival sold approximately 2.7 million tickets (a 9.0% increase on 2016) and attracted millions of visitors, making it the largest annual arts festival across the globe. The Edinburgh Festival supports 100% hotel occupancy for a six-week period every year. This festival, alongside other events, such as Hogmanay (New Year’s Eve), and a strong summer season (owing to a high volume of leisure groups) has contributed to year-long average occupancy in Edinburgh of around 80% for the last few years. The market’s average rate grew for the seventh year in a row in 2017, resulting in one of the highest citywide RevPARs in Europe. Edinburgh’s tourism has also benefitted from increasing airport arrivals, which grew by a compound annual rate of 4.1% between 2010 and 2017, as an increase in the number of flight connections boosted international tourism. The Scottish Government’s plan to reduce Air Passenger Duty may also help to encourage airlines to develop new international routes, thus increasing tourist numbers. Finally, despite the ongoing political debate regarding another independence referendum for Scotland, Edinburgh’s operational and investment outlook looks positive.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Edinburgh RevPAR Change (€Euro)

Edinburgh RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
sperret@hvs.com
  • +44 20 7878 7722 (w)
Simon Hulten
shulten@hvs.com
  • +44 020 7878-7775 (w)