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Hotel investors eye Cambridge deals moving into 2021

Hotel investors eye Cambridge deals moving into 2021

Cambridge has become the most attractive UK city for hotel investment in 2021, according to new research from Deloitte.

The university city is closely followed by rival Oxford and Scottish capital Edinburgh, which rank second and third, respectively, the in the annual hotel industry survey.

In Europe, Amsterdam remains the most attractive city for hotel investment next year, followed by London and Paris.

Overall, the mood of the market remained upbeat, despite the challenges posed by the Covid-19 pandemic.

Over two-thirds of respondents are ‘strongly’ or ‘slightly’ optimistic about the long-term future of the UK hotel market, with the majority also predicting a rise in profitability over the next five years.

Andreas Scriven, head of hospitality and leisure at Deloitte, said: “The hotel industry has been one of the hardest hit by the outbreak of Covid-19.

“However, as vaccination developments look increasingly promising and consumers think ahead to 2021 travels, senior hospitality figures are more optimistic about the year ahead.

“Indeed, many expect profitability to rise between now and 2025.”


He added: “The restrictions on international travel this summer saw many UK consumers switch their holiday plans to domestic staycations.

“UK destinations also remain attractive for hotel investment, with Cambridge overtaking Edinburgh to the top spot this year, the latter moving to third place behind Oxford.”

Compared to 2020 levels, over a quarter of respondents expect revenue per available room (RevPAR) growth to be greater than nine per cent in London in 2021, with 21 per cent expecting the same RevPAR growth for UK regions over the same period.

However, half of the respondents believe that a ‘no deal’ Brexit will lower the attractiveness of London for hotel investment.

Nikola Reid, director and head of UK hospitality advisory at Deloitte, added: “Across Europe, hotel investors continue to look for opportunities in Amsterdam which retains its place as the most attractive European city for investment for the fifth year in a row.

“Second to Amsterdam is London but, as the Brexit transition deadline approaches, investors indicate some caution.

“Combined with the challenges that Covid-19 has presented this year, boosting consumer confidence to once again pack their suitcase will be key to a speedy recovery of the hotel industry, and ensure long-term projected investment is realised.”