Hotel occupancy exceeds 84% in Edinburgh and Dublin, outperforming other European gateway markets
New research from international real estate advisor Savills shows that Scottish and Irish hotel markets continue to outperform other leading European gateway cities, underpinned by exceptional occupancy, robust RevPAR performance and a proven ability to absorb new supply. Savills says Edinburgh recorded the highest occupancy among the major European gateway markets analysed, at 84.6%, with Dublin only marginally behind at 84.1%. This compares with a European average occupancy of 71.7%. In the 12 months to April 2026, Edinburgh recorded RevPAR of £141, while Dublin achieved €148, placing both cities ahead of several larger European markets, including Barcelona, Madrid and Amsterdam.
Compression nights further underline the strength of both markets. In the 12 months to April 2026, Dublin recorded 146 nights where occupancy exceeded 90%, equivalent to 40% of all nights, while Edinburgh recorded 118 compression nights, or 32% of the year. Among the other European gateway cities sampled, the next highest was Copenhagen, with 77 compression nights.
Savills says this performance has not been achieved in supply-constrained conditions. Between 2016 and 2025, hotel supply recorded a compound annual growth rate of 2.5% in Dublin and 2.0% in Edinburgh.
The development pipeline also remains meaningful, with rooms under construction equivalent to 12.6% of existing supply in Edinburgh and 13.5% in Dublin. Savills says both cities have repeatedly demonstrated an ability to absorb new hotel product without undermining headline trading performance.
Savills notes that demand across Scotland and Ireland is underpinned by a resilient mix of corporate, leisure, cultural and heritage drivers. Corporate demand remains particularly strong in Dublin, supported by its established base of global technology and multinational occupiers, while both Scotland and Ireland benefit from compelling leisure propositions spanning world-class golf, heritage, culture, natural landscapes and food and drink tourism. Savills adds that ancestry and personal connection continue to play an important role for international visitors, giving both markets an emotional pull that supports long-term demand resilience.
Savills says the breadth of outperformance is particularly notable, with strength visible not only in gateway cities such as Dublin and Edinburgh, but also across a wide range of secondary and tertiary hotel markets.
Thomas Emanuel, head of hospitality thought leadership, EMEA, Savills, comments, “Dublin and Edinburgh are among the clearest examples of Europe’s strong urban hotel markets. Both cities are delivering occupancy levels well ahead of the European average, while also maintaining premium RevPAR performance despite meaningful supply growth. What stands out is the resilience and depth of demand. These are not markets being sustained simply by a lack of new competition. They have absorbed additional rooms, maintained high compression levels and continued to outperform many larger European gateways.”
Steven Fyfe, director, hotel capital markets, Savills Scotland, adds, “Scotland combines globally recognisable urban destinations with highly differentiated regional leisure propositions. Visitors can access some of Europe’s best golf courses, internationally recognised heritage and culture, dramatic natural scenery, and established food and drink tourism. Scotland benefits from a blend of corporate, leisure, cultural and heritage demand that reduces reliance on any single segment. This diversity of demand is what continues to set Scotland apart as one of Europe’s most resilient hotel markets.”
Tom Barrett, head of hotels & leisure, Savills Ireland, adds, “Ireland’s rich history and high proportion of European headquarters for North American companies ensures that the Irish hotel market benefits from a combination of strong demand for both corporate and leisure travel. Visitors from the US and UK top the list, but other source regions include Germany, France, Spain and Italy, showing the broad base of demand for Irish hotels from different countries.”