The UK hotel market is having a moment in 2025 with Canterbury district, Kent’s tourism capital, in the sights of investors looking for the right location in places that can deliver results for the long-term.
Occupancy levels nationwide have re-bounded to over 90% of pre-pandemic levels with the average UK revenue per available room (RevPar) up nearly 7% year on year. This clear sign of renewed confidence has not gone unnoticed by investors with over £2bn of institutional capital deployed into UK hotels since 2023.
Canterbury district, which includes the UNESCO historic city of Canterbury, the vibrant coastal towns of Whitstable and Herne Bay, plus a swathe of picture postcard village is one of the most visited areas of Kent. Over 7.2 million visitors are welcomed annually – up 5% on 2019.
Tourism accounts for 16% of total jobs and generates £392 million in visitor spend annually. Canterbury’s well-connected location, just an hour from London St Pancras has already made it a popular day trip destination. With £19.9 million being invested this year into further improving the city centre and the enduring appeal of this most attractive of places in Kent, there is a lot more to come.
With its rich heritage, vibrant arts and cultural scene – including year-round events and festivals – plus stunning coastline and countryside – Canterbury district is a visitor destination like no other. Add in prestigious wine estates on a par with the best of France, famous link golf courses close by that have welcomed champions and a vibrant business economy, including great shopping – this is a place suited to longer stays too.
So, what are the opportunities for hotel and visitor investment in Canterbury district?
First let’s look at what’s already here. Boutique has long been the word, including The Pig at Bridge Place, which was named Number 4 in the Top 50 Boutique Hotels in the UK back in 2022. The Falstaff, a former 15th century coaching inn within minutes of the High Street, is another with a deserved reputation as one of Kent’s most romantic and charming places to stay.
For views of one of the UK’s most impressive cathedrals, there’s Canterbury Cathedral Lodge, a stylish lodge in the grounds of the oldest church in the English-speaking world with the ruins of St Augustine’s Abbey close by. Hampton by Hilton opened its 129-guest room hotel close to Canterbury’s most famous landmarks and its restaurants, bars and nightlife back in 2021. There are also three other hotel projects at the planning stage – mostly extensions to existing successful hotels – which, if approved, would result in 66 new rooms.
Despite this success to date, there are gaps in hotel accommodation both in Canterbury and across Kent.For example the county lacks any five-star hotel provision and has limited three-star and four-star provision. With only 30 hotels with over 100 bedrooms in Kent this is definitely a time of opportunity for investors looking for the right location. So where better to look than Canterbury?
The presence of the University of Kent, University for the Creative Arts and Canterbury Christ Church University, events like the Kent Business Summit and a growing cluster of innovators – from life science, AI and automation to the creative industries, food and drink, and manufacturing – are also putting Canterbury in the frame for the larger conference market.
With high visitor demand, a diverse economy, strong land and site availability within easy reach of London and mainland Europe plus full support from a business-friendly forward thinking city council, Canterbury is a place full of opportunity for hotel investment.
Chris Cornell, the city council’s Cabinet Member for Economic Development and Inclusion, said: “The district of Canterbury is the place to invest in new hotels. Our new Local Plan and town centre strategies will encourage new hotels to be part of future regeneration schemes in our city and towns.
“There’s also the potential to get involved in projects that can take place now – adding to the offer of existing sites and making innovative use of underused offices and other spaces. We’re building a strong platform to create a pipeline of hotel projects for the future.”
Charles Hutchings-Lawrence, Business Development Manager, Locate in Kent, said: “We know the challenges that investors face. However, finding the right location with the right local backing is half the battle – and in Canterbury they will find a place that ticks all the right boxes, where everything possible is done to make things happen.
“Canterbury’s combination of cultural appeal, heritage strategic location and business power through having three universities located here, also ready makes the district an attractive proposition for the UK hotel industry. By choosing Canterbury investors will find the support they need to get things done and the demand to justify their investment for the long-term.”