MORE hotels are being built, bought or developed in York than most other cities in the UK.
York placed second in this year’s UK Hotels Market Index, released this week by Colliers International, which looks at 34 locations around the country and ranks them for hotel development and acquisition.
The index analyses the locations and scores them according to nine Key Performance Indicators (KPIs), including land site prices, build costs, market appetite, valuation exit yields, room occupancy, average daily rate, room occupancy rates, four year revenue per room trend and supply and construction costs.
The ratings are then consolidated into a single figure and ranked, to help potential investors or developers pinpoint which markets would be desirable.
Following two years of discussion with planners in York, Northminster Ltd recently submitted plans for a new 146-bedroom hotel in Piccadilly, but said the scheme may go on hold due to the Spark:York streetfood hub on the old Reynard’s garage site.
The city has also seen the Indigo hotel in Walmgate and apartment-hotel site next to the Barbican developed in recent years, with a new Malmaison planned for the former Aviva building in Rougier Street, a Travelodge in Layerthorpe, and a new 120-bed hotel from Vastint Hospitality planned for Hungate (see page six). Meanwhile, a large scale expansion is currently underway at the Grand Hotel &Spa.
This year’s index saw York in second place, behind Chester, but ahead of its nearest geographical location, Leeds, which placed ninth. York also placed four places higher than its finishing position in last year’s index.
Peter Bean, director of Hotels Agency at the Leeds office of Colliers International, said: “The data in our second report reveals the ever-changing nature of the UK hotels market. York has really upped its game in the last year to make it into the top five... the data demonstrates that London is not the only city that investors should be watching.”