Glasgow’s economic transformation: traditional foundations and emerging growth sectors

The Savills Blog

Why you shouldn’t dismiss Glasgow when it comes to Scotland hotels

When it comes to Scottish hotels, quite often it’s the likes of the Balmoral and the Gleneagles Townhouse that immediately spring to mind. This is unsurprising considering that Edinburgh accounted for 58% of Scotland’s hotel transactions in 2024.

However, with prices soaring in Scotland’s capital city, Glasgow is becoming increasingly popular with visitors. In fact, according to the Scottish Tourism Economic Model (STEAM), data shows a huge spike in visitor numbers attracting 25.7 million people last year, a 26.6% rise since 2022. This is, thanks in part, to events like the UCI Cycling World Championships and the Banksy exhibition drawing in visitors over the past three years.

Also, having been voted UK’s friendliest city by CondeNast Traveller in 2024, Glasgow’s growing reputation as a holiday destination is positively impacting the hotel market. 

Glasgow hotels performing strongly

The proof of Glasgow’s popularity can be seen in the data from CoStar. Hotel occupancy, for instance,  reached 78% at the end of 2024, the highest since 2019. It has also seen the average daily rate (ADR) rise to £96, a 7.3% increase year-on-year. When compared to Edinburgh, which had an ADR exceeding £160 last year, it is clear to see the comparative value.

Revenue Per Available Room (RevPAR) is also growing, reaching £74 at the end of 2024, 8.9% up year-on-year and a 32% increase on 2019. This is currently the highest of other key regional cities including Leeds, Birmingham, Manchester, Liverpool and Newcastle, making it an interesting proposition for investors and hotel developers.

A packed events calendar

This positive growth has, to some extent, been fuelled by Glasgow being chosen to host a number of global events. These historically have led to a significant RevPAR boost for the city. For example, the 2014 Commonwealth Games led to an increase of 67% and, according to Insider Media, generated £282 million in tourism revenue and 690,000 visitors to the city.

It is no wonder, then, that the return of the games in 2026 is already creating excitement. Team Scotland anticipate that it will add value of over £150 million to the region, and with over 500,000 tickets available, welcome a significant number of people to Glasgow.

Other events like COP26, the 2021 United Nations Climate Change Conference, saw more than 40,000 people in attendance, which led to RevPAR jumping by as much as 123%.

New openings

As a consequence of this strong activity, Glasgow has seen as many as seven new hotel openings in the past three years. With the Social Hub in Candleriggs and House of Gods in Merchant City providing genuinely unique offerings.

At present, there are also no new hotels under construction providing the city with a competitive edge and an opportunity for these new entrants to establish themselves in the market.

Ultimately, Glasgow has a lot going for it, and with a thriving hotel scene, could it be your next city break?

 

Further information

Contact Steven Fyfe

Hotels

 

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