Scotland is witnessing an increase in the number of Gulf investors in its hospitality sector, it has been revealed.

One of the key investors is the Abu Dhabi Investment Authority.

Other global investors in Scotland include KSL, Sandman, Starwood Capital from North America and European private investment companies such as Topland and Patron Capital.

Scotland has been ranked as the second best market, among 13 European countries, in terms of total investment returns in the leased hotel sector, with Scottish-leased hotels showing a 7.8 per cent growth year-on-year over the last three years, a new research revealed.

Scottish hotels produced a total return of 9.2 per cent year-on-year in 2013, almost doubling the sector’s performance in 2012 when a return of 4.8 per cent was recorded.

This annual research aims to provide insight and empirical evidence for real estate investors to consider hotels in Scotland as a mainstream investment within their portfolio. Highlights from the report are:

• The strong Scottish hotel performance followed a broadly improving European trend throughout 2013, when the rest of UK hotels returned 11.4 per cent year-on-year, up from 5.2 per cent in 2012 and Pan-European hotels returned 6.6 per cent year-on-year (in local currencies) up from 5.8 per cent.

• Income return for Scottish hotels, at 6.3 per cent year-on-year drove performance, while capital values returned to growth, up 2.7 per cent year-on-year for 2013, having fallen back by 1.2 per cent year-on-year in 2012.

Tom Marchbanks, Middle East regional manager at Scottish Development International, said: “Scotland has established itself as a primary destination for high-end tourists from the Arab world because of what it has to offer in terms of its authenticity, excellent hospitality and diverse experiences.  This enthusiasm into direct investment into the hospitality sector from the Gulf region is clearly reflected in our latest figures.”

Graeme White, head of tourism at Scottish Development International, said: “The spotlight is very much on Scotland during 2014, as the host country for the Commonwealth Games and the Ryder Cup, plus the Year of Homecoming celebrations.  These events provide unparalleled opportunities to highlight Scotland as a tourism destination to a global audience.  Over 600,000 visitors attended the Commonwealth Games and Festival 2014 events.  Over the nine nights of the games, hotel occupancy rose by 11.2 per cent in Glasgow, creating the highest July occupancy figures ever.” – TradeArabia News Service