For much of the past decade, Glasgow has seen itself become one of the UK's strongest regional hotel markets. A diversified corporate economy, thriving events calendar, expanding leisure tourism and one of Britain's busiest convention venues have underpinned occupancy, while new supply has remained relatively constrained.
And now the Glasgow 2026 Commonwealth Games… It may be significantly smaller than either the 2014 edition or Birmingham 2022 but there is still some significance for hotel investors. The Games represent another opportunity to showcase Glasgow as an international events destination while reinforcing the investment case for further hotel development in Scotland's largest city.
Unlike traditional mega-events, Glasgow's second stint as Commonwealth Games host has been deliberately designed around existing infrastructure instead of costly new venues.
Athletes are staying in hotels as opposed to a purpose-built village, with competitions spread across established facilities including the SEC, Emirates Arena, Tollcross International Swimming Centre and Scotstoun Stadium. Organisers estimate the event will generate around £150 million of economic value and inward investment while operating on a substantially leaner budget than previous Games.
Revenue management platform Lighthouse reports advertised hotel prices during the Games have risen by 153 per cent compared with the same period in 2025, with some midweek nights recording increases exceeding 200 per cent. The uplift is not confined to weekends or headline events. The Games have flattened Glasgow's normal demand curve, filling nights that would normally attract discounted rates.
That pricing power has become even more pronounced as the Games coincide with Glasgow Fair, major concerts and the start of the city's peak summer tourism season. Recent market data shows room rates across every hotel category have risen sharply, demonstrating both the city's constrained supply and the willingness of visitors to pay premium prices during major events.
Longer term impact of the Games
But the real question is whether Glasgow has reached the point where another wave of hotel investment makes long-term sense. The early signs are positive - the Scottish Event Campus has become one of Europe's busiest convention centres, attracting major congresses, political conferences and entertainment events throughout the year. The city's universities generate significant academic travel, while its financial and professional services sector supports weekday corporate demand.
On top of that, the TRNSMT Festival, major concerts, international football, rugby, cycling and athletics have helped drive demand.
Glasgow has 16,000 hotel rooms which in a typical year run at 80 per cent occupancy, according to Savills, and over the past few years the city has welcomed new branded openings across multiple segments, including lifestyle, select-service and extended-stay products.
One of the more closely watched proposals involves the redevelopment of the former Pizza Hut site on Argyle Street. Plans to revamp the façade of a prominent building at Glasgow’s ‘Four Corners’ were approved in April as the owners look for a hotel operator to take over the upper floors. The application from Clydebuilt II Limited Partnership, a joint venture between property firm Ediston and Strathclyde Pension Fund, states the alterations will help “attract a high-quality flagship restaurant tenant”, while an opportunity to use the upper floors as a hotel or hostel was recently marketed by CDLH.
Glasgow will also hope that it can benefit from the boost received by previous hosts. Manchester's 2002 Commonwealth Games was widely credited with accelerating the regeneration of East Manchester while strengthening the city's reputation as a destination for conferences, sport and tourism. The Games acted as a catalyst for infrastructure investment that eventually supported developments including Sportcity, Etihad Stadium expansion and surrounding commercial investment.
Gold Coast 2018 similarly used the Games to reinforce its international tourism credentials while stimulating hotel development that has continued beyond the event itself.
Even Birmingham 2022, despite facing significant cost overruns, delivered strong hotel performance during the Games and showcased districts undergoing wider regeneration. International operators have continued investing across the city since as conference demand recovers and leisure tourism expands.
Glasgow steps into the breach
Following Victoria's withdrawal as host, Glasgow stepped in with a radically simplified model designed around financial sustainability rather than civic spectacle. Commonwealth Sport believes the approach could become the template for future Games, demonstrating that major sporting events can be delivered without billion-pound infrastructure programmes.
One of the clearest examples is the continuing transformation around the Scottish Event Campus. A new 163-room Radisson RED hotel has been developed adjacent to the OVO Hydro in time for the Games and has added accommodation alongside one of the UK's busiest conference and entertainment venues. The project also includes a new events venue.
Last year, real estate investor and asset manager Oberland, in partnership with real estate investment platform SFP Group, acquired the Arthouse Hotel, formerly the ABode Hotel, originally built in 1829 by James Campbell and Oberland completed refurbishment as a 76-room hotel at the end of June. Also last year, Maven completed the sale of Ibis Styles Glasgow Centre George Square to St James Hotel group for around £7.5M. The 101-bedroom hotel, located on Miller Street, was developed by Maven clients in 2014 and opened in September 2015. Maven Partner Paul Johnston described the deal as marking a “successful exit from a long-standing investment that has delivered consistent performance and strong returns for our investors.”
Neighbourhoods reimagined in city centre
Elsewhere, investment is changing entire neighbourhoods. Plans for a £160 million redevelopment of Glasgow's Chinatown were submitted in May by Keltbray Chinatown Developments – a joint venture between Keltbray Developments and the current owner of Glasgow Chinatown – which would deliver more than 650 student beds, new homes, retail and leisure,
A major regeneration project on Glasgow’s riverside has also taken a step forward as plans for over 500 homes in a co-living development have been lodged for the first homes at Yorkhill Quay, which is part of the firm’s wider Glasgow Waters district masterplan.
It is working with property developer Urban Pulse on the £100 million co-living scheme, while Yorkhill Quay features the Riverside Museum designed by architect Zaha Hadid, and the Clydeside Distillery & Whiskey Museum. Planning consent has recently been granted for an additional 1,100 residential units, a 200-bed hotel and a small family leisure development.
For Glasgow, the key is to ensure that the Commonwealth Games deliver a long-distance boost to the city’s hotel and hospitality sector as Scotland’s largest city undergoes an evolution for the future.