This brings the year-to-date total to £200 million, an 18% rise compared to 2023. Colliers# Scotland Snapshot report also notes that it is seeing interest not only for larger hotels in built-up areas, but also for leisure-based hotels in popular locations.

Major deals for the quarter include the purchase of Caledonian Hotel in Fort William, the Great Western Hotel in Oban and the Pitlochry Hydro in Perthshire, all acquired by Bespoke Hotels for an undisclosed sum.

In addition, Colliers completed another off market sale for Solley Hotels, selling Pitbauchlie House Hotel in Dunfermline to Smar Hotels Ltd. The deal marked Colliers’ third sale for Solley Hotels in Scotland this year, in addition to a number of other hotel deals across the region in recent months.

Julian Troup, head of Colliers UK Hotels Agency, said: “These latest figures show that we’re continuing to see robust demand for hotel assets north of the border, with Scotland’s popular cities and stunning landscapes making it a desirable market for those looking to invest in UK regional hotels.

“Earlier this year our Hotel Market Index positioned Edinburgh as the top market in the UK, with Inverness and Glasgow also featuring in the top 10, reinforcing Scotland’s appeal as a sought-after location for investors.”

The report from Colliers notes that investment activity across all asset classes within Scotland rose to £380 million in Q3, with a year-to-date total of £1.1 billion, in line with 2023 figures. Cross-border capital has accounted for 28% of all activity by value so far this year, slightly below last year’s share of 33%.

Oliver Kolodseike, director in the Research & Economics team at Colliers, added: “The overall landscape for Scotland presents a mix of challenges and opportunities, highlighted by fluctuating yields and sector-specific dynamics.

“We expect investor confidence to improve as interest rates are cut further over the next 12 months, resulting in a pick up in transactional activity.”