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Spotlight on Edinburgh hotels: Conversions underpin new openings

A growing room inventory and the upcoming visitor levy pose downside risks for the Scottish capital in 2026
The famous Royal Mile in Edinburgh on a summer afternoon, Scotland. (Getty Images/iStockphoto)
The famous Royal Mile in Edinburgh on a summer afternoon, Scotland. (Getty Images/iStockphoto)
CoStar Analytics
December 17, 2025 | 7:00 AM

Edinburgh’s appeal as a destination has translated into a significant increase in hotel developments, as falling office and retail property values have lowered the barriers to entry. As a result, conversions are expected to underpin new openings over the next two to three years, according to CoStar data.

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News | Spotlight on Edinburgh hotels: Conversions underpin new openings