Oxford has surged up Colliers’ 2025 UK Hotel Market Index, climbing three spots to achieve joint second place alongside Inverness.
This rise underscores the city’s exceptional hotel market fundamentals, driven by double-digit growth in Revenue Per Available Room (RevPAR), robust Average Daily Rate (ADR) performance, and a constrained development pipeline.
According to the index, which assesses 35 UK locations against nine weighted criteria, including occupancy levels, ADR, RevPAR growth, pipeline analysis, and development costs, Oxford’s Market Index Score has improved in 2025, marking a solid year-on-year progression.
In 2024, Oxford posted a 9.27% increase in ADR, climbing from an average £115 to £126 per room per night, ranking third in the UK for year-on-year ADR growth, behind only London and Edinburgh. The city also ranked among the top five in Colliers’ analysis for RevPAR growth, a reflection of strong underlying demand and pricing power in its hospitality sector.
A globally renowned university city, Oxford benefits from a steady stream of domestic and international visitors drawn by its rich history, iconic architecture, cultural institutions, and academic prestige. Its blend of heritage tourism and business travel makes it a consistently attractive destination throughout the year.
What further sets Oxford apart is its limited hotel development pipeline, which mitigates the risk of future oversupply, helping to preserve high occupancy and rate performance, an attractive proposition for investors.
Marc Finney, Head of Hotels & Resorts Consulting at Colliers, commented: “Oxford’s strong market fundamentals and limited pipeline create an ideal environment for investors. Its performance underscores the resilience and appeal of regional UK cities in the post-pandemic travel recovery.”
Siddhika Shah, Director in Hotels Advisory Services at Colliers, added: “Oxford’s ascent in the rankings highlights the city’s exceptional blend of stable demand drivers, consistently strong ADR, and limited new supply.
It reflects a broader trend seen in the 2025 Hotel Market Index, where regional UK markets with well-balanced supply-demand dynamics are increasingly outperforming more saturated urban areas.
Oxford presents a compelling case for investors, proving that intelligent strategies aligned with strong market fundamentals can deliver resilient and rewarding returns.”
