An extended summer staycation boom has been predicted in Inverness as the Highland capital’s newest hotel opens its doors to guests for the first time today.
The River Ness Hotel, converted from a redundant city centre office block by Axcel Hospitality, is the first to open in Scotland under the Radisson Individuals brand.
Ian Derrick, a director at commercial real estate advisor, Avison Young, which worked with Axcel on the project, said it was being launched at a “prefect time” to meet an expected leap in demand for visitor accommodation.
One of the UK’s top hotel markets
Mr Derrick said: “Inverness has been one of the UK’s top performing hotel markets in recent years. This has been driven by the increasing tourism profile of the city and the wider Highland region, and reinforced by the limited supply of new hotel developments.
“The market also benefits from strong corporate demand, providing the city with a good blend of midweek and weekend hotel custom all year round.
“The River Ness Hotel is opening at a perfect time to take full advantage of the incoming Highland staycation boom this summer.”
He added: “After an extremely tough 18-month period for the industry, the hotel market in Inverness and the wider Highland region are already enjoying an uptick in bookings, which we expect will continue right through to the autumn.”
The new River Ness Hotel, in Church Street, has 76 bedrooms, a bistro, bar and gym and its operators say it is aimed at both business and leisure travellers.
The building became vacant in 2019, when 120 Department of Work and Pensions (DWP) staff moved to join their Jobcentre Plus colleagues in River House, in Young Street.
The acquisition and investment in the building’s conversion by hotel development and management company Axcel was supported by Avison Young, which provided a feasibility study for the project.
Axcel director, Oushan Deelijore, said: “Axcel Hospitality are delighted to announce this very exciting upscale hotel in the city centre of Inverness.
Inverness is a market we have been trying to invest in for some time and we are confident this will be a great addition to our existing portfolio of hotels in the UK.”
Croydon-based Axcel’s portfolio includes Hilton, Marriott and Accor hotels around the UK.
Canadian-based international real estate firm Avison Young, which has offices in Edinburgh and Glasgow, has worked with Axcel on a number of other projects. They include the UK’s first new build Voco Hotel, which opened in Edinburgh earlier this year.
Radisson Hotel Group owns more than 1,400 hotels around the world. Its Radisson Individuals “conversion brand” was launched last year, with the aim of encouraging independent hotels as well as local and regional chains to join the group’s platform.
A number of new hotels are being developed in the centre of Inverness.
In March, construction work started on a 175-bedroom Marriot hotel at a long derelict plot at Glebe Street, on the banks of the River Ness.
Development of a 210-room Hampton by Hilton establishment next to Farraline Park bus station is expected to start later this year.