While the allure of owning a seaside hotel is undeniable, the reality is that buying and running an entire hotel can be a substantial financial and operational undertaking, often beyond the reach of many investors. But what if there was a way to tap into the hotel industry’s potential without all the hassle and expense?
Enter the concept of investing in individual hotel rooms. This approach offers a more straightforward, more affordable way to get a slice of the hospitality market. Instead of managing an entire hotel, you can own a single room or a few rooms, enjoying rental income and property appreciation with far less risk and complexity.
To help you explore this opportunity, Alesco’s data analysts have leveraged official statistics from the Office for National Statistics (ONS) and popular search trends from Ahrefs — a leading tool for search engine insights. Analysing data from 169 coastal towns and examining search interest, we’ve pinpointed the most promising locations for hotel room investments in 2025. Our insights aim to guide you toward the best spots where your investment could yield significant returns.
Ready to discover where your next hotel room investment could be? Let’s dive into the top coastal towns that are set to shine in 2025.
The case for hotel investment in the UK
Investing in hotels is not just a savvy move — it’s an exciting opportunity overall. There are a few reasons why it’s been a reliable choice for so long.
Hotels have a proven track record of profitability, especially during times of high demand. For instance, during major events in the UK, hotels often experience near-full occupancy as fans and visitors flock to the area.
Another big plus is that hotels often appreciate in value over time, especially in a popular area — be it a major city or a seaside town. Plus, hotels can adjust their room prices based on demand, seasons, and local happenings, which helps them stay profitable even during slower periods.
And let’s not forget the impact hotels have on local communities. They attract tourists, create jobs, and support other local businesses. With their solid history of making money, diverse income sources, and benefits to local economies, hotels are a wise investment choice.
Room with a view — and a profit
That being said, unlike buying an entire hotel — which can be a massive investment and a lot of ongoing work — investing in hotel rooms lets you enjoy property ownership with much less hassle.
When you think about investing in a hotel in the UK, it’s more than just purchasing a building. You’re diving into a full-scale business. This means a hefty upfront cost — purchase price, renovations, and furnishings — and ongoing expenses like hiring staff, maintenance, and marketing. Plus, managing a hotel involves a lot of time and expertise, from dealing with guest services to navigating local regulations.
Investing in individual hotel rooms is a much simpler process. Instead of managing a large property, you’re investing in a single, manageable asset. The initial investment is usually lower, and you’re not dealing with the complexities and financial risks of running a large operation. Plus, hotel rooms in the UK are exempt from stamp duty, which can be a significant saving compared to other property investments. You get the benefits of real estate investment — like rental income and potential property value growth — without the primary headaches.
In terms of returns, hotel rooms often offer high yields of 8% or more, compared to the average buy-to-let yield of 4.98% in England and Wales. This makes them an attractive option for investors seeking better profitability.
10 coastal towns you should be investing in
The UK’s seaside towns, with their beautiful beaches, lively atmospheres, and year-round appeal, are genuinely a goldmine for property investors. Whether it’s the steady flow of holidaymakers, business trips or the growing staycation sensation, these charming spots offer a consistent demand for accommodation, making hotel investments particularly enticing.
That said, the best coastal towns for investment might not be the ones you expect. Alesco has analysed market data to identify the most profitable coastal towns for hotel room investments in 2025. If you want to diversify your portfolio or capitalise on the staycation trend, these towns are excellent choices. Here are our top 10 picks for investing in coastal properties.
1. Blackpool
Blackpool tops our list as the coastal town with the highest investment potential.
Often dubbed the ‘Las Vegas of the North,’ Blackpool continues to attract visitors and is forecasted to have an average monthly search volume of 18,512 for its hotels in 2025. This substantial search interest indicates that Blackpool remains a popular destination, suggesting a sustained demand for property in the area
Moreover, Blackpool is in the midst of a major transformation, with three key projects driving the town’s modernisation. Together, these initiatives represent a massive £900 million investment, aimed at revitalising Blackpool’s most important areas and boosting its economy. The Blackpool Central development stands out as a particularly exciting project, set to turn a large part of the town into a world-class leisure and entertainment hub. These regeneration efforts are expected to raise property values, upgrade infrastructure, and open up new opportunities for businesses and investors alike.
With its iconic attractions, thriving tourism industry, and potential for economic renewal, Blackpool offers investors a unique opportunity to make a real difference while also securing solid returns.
2. Llandudno
Llandudno is another standout spot for hotel room investment, thanks to its timeless charm and strong market appeal. Known as the “Queen of the Welsh Resorts,” this coastal gem continues to attract a steady stream of visitors and property seekers.
Situated on the north coast of Wales, Llandudno is perfectly positioned as a gateway to the breathtaking landscapes of Snowdonia National Park and other nearby wonders. Llandudno has easy accessibility from major cities and excellent transportation links make it a hassle-free destination for visitors from both near and far.
With its historic charm and promising investment opportunities, Llandudno stands out as a prime choice for those looking to invest in the hospitality industry. The predicted consumer search demand for Llandudno hotels is set to reach 8,884 in 2025, highlighting the town’s status as a highly sought-after destination.
3. Whitby
Nestled amidst the dramatic cliffs of the Yorkshire coast, Whitby offers a captivating blend of history, charm, and natural beauty. This picturesque seaside town, renowned for its stunning Whitby Abbey and cobbled streets, is a prime destination for hotel room investments. Its breathtaking vistas and rich heritage attract visitors seeking a unique and unforgettable experience. With a vibrant calendar of events, from traditional festivals to quirky celebrations, Whitby promises a year-round allure for travellers seeking adventure and discovery.
Like Blackpool, Whitby is undergoing several revitalisation projects aimed at enhancing its infrastructure and visitor experience. With a forecasted consumer search demand of 81,298 for Whitby hotels in 2025, the town is poised to attract significant attention and draw large numbers of visitors. This makes it an excellent investment opportunity.
4. Bournemouth
Hot on Whitby’s tail is Bournemouth, an iconic seaside town. Bournemouth attracts a lot of visitors, especially during the summer. Unsurprisingly, searches for Bournemouth hotels are expected to reach 8,040 by 2025. With its seven-mile stretch of award-winning beaches and various attractions, the demand for accommodation remains consistently high.
The town features a mix of charming Victorian and Edwardian architecture alongside modern buildings. Notable examples include the Victorian Bournemouth Pavilion and the contemporary Bournemouth International Centre.
Bournemouth’s vibrant tourism scene and varied accommodation types create a promising landscape for potential hotel investors.
5. Scarborough
Once a sleepy seaside town, Scarborough is now a thriving destination. Its coastal charm, combined with a vibrant atmosphere and welcoming tight-knit community, makes it a must-visit. With the healthy rise in tourism, hotels in Scarborough are experiencing high occupancy rates.
Investing now allows you to capitalise on this trend, ensuring a steady stream of income as more visitors seek out places to stay. Alesco has projected that Scarborough’s hotels will see a consumer search demand of 6,045 by 2025. This isn’t just a statistic — it’s a clear indicator of the town’s growing appeal and the increasing interest from potential visitors.
6. Weymouth
Number 6 on our list is blessed with a stunning natural setting. Weymouth sits right on the Jurassic Coast — a UNESCO World Heritage site renowned for its dramatic cliffs, fossil-rich beaches, and breathtaking views.
The town’s appeal is bolstered by events such as the Weymouth Carnival, Seafood Festival, and Ironman 70.3 — a series of long-distance triathlon races — which attract thousands of visitors annually — many of whom need a place to stay. In fact, by 2025, the demand for Weymouth hotels is expected to reach 4,168 searches, reflecting the growing interest in this delightful destination.
Like Scarborough, Weymouth is a town on the up. The area is set to benefit from a substantial boost thanks to a recent £195 million grant from the government’s Levelling Up Fund. The grant will support the transformation of the town centre and waterfront area, creating more vibrant and engaging spaces for both locals and visitors. This will include better access and improved facilities, increasing the area’s attractiveness for tourists and potential hotel guests.
7. Eastbourne
Eastbourne, located on the South Coast of England, is ranked seventh on our list. With its beautiful pebble beach, expansive seafront, and iconic Eastbourne Pier, the town offers a quintessential British seaside experience. Moreover, it’s easily accessible from London, with direct train services taking just over an hour, making it a convenient getaway for city dwellers.
The “sunniest place in the UK” has a rich cultural life, including the Towner Art Gallery, which boasts a notable collection of modern art, and the Eastbourne Theatres, offering a range of performances from drama to musicals. The Turner Prize exhibition and the “Eastbourne Alive” events recently attracted 200,000 visitors, injecting a healthy £16.1 million into the local economy.
Eastbourne is also undergoing a dynamic transformation, fueled by an enormous £19.8 million government investment aimed at revitalising the town. As a result of these efforts, Eastbourne is quickly becoming a sought-after location for both renters and tourists.
Reflecting its growing popularity, Eastbourne’s hotels have a search interest of 2,969. Investors have the opportunity to explore a range of boutique hotels, including an elegant, family-run Victorian property — now available for investment. With its peaceful setting and proximity to natural attractions like the South Downs, Eastbourne is the perfect destination for those seeking a relaxing retreat.
8. Newquay
Next on our list is Newquay — nestled along Cornwall’s breathtaking north coast. Its sun-drenched beaches, reminiscent of those in Australia, such as Fistral Beach and Towan Beach, are major attractions for visitors seeking the perfect blend of surf, sun, and stunning views. Family favourites like Newquay Zoo and the Blue Reef Aquarium keep things exciting for all ages.
But it’s not just about the beaches. Newquay has a charm that’s hard to resist. Picture quaint shops, cosy cafes, and local pubs where you can savour fresh seafood and Cornish delights.
Investing in a hotel room in Newquay presents a fantastic opportunity to engage with a dynamic and growing market with diverse guest needs. With a projected search demand of 2,842 for its hotels in 2025, Newquay continues to be a top destination. Whether you envision a chic boutique retreat, a surfers’ haven, or a family-friendly spot, the breathtaking coastal scenery offers excellent potential for strong returns.
9. Torquay
Torquay is a picturesque spot on the English Riviera, famous for its stunning coastal views, charming beaches, and beautiful gardens.
But Torquay isn’t just about its natural beauty. It’s also a fantastic place to invest, especially in hotel rooms. The town attracts visitors for a variety of reasons — whether it’s the chance to explore the Agatha Christie Mile, enjoy water sports, hike in the literary landscape of Dartmoor National Park, or experience the vibrant local culture. With 2,809 recent searches for hotels, it’s clear that there’s a strong demand for accommodation here.
Investing in Torquay means tapping into a steady stream of tourists and benefiting from the town’s ongoing efforts to boost its appeal. The combination of stunning scenery, diverse attractions, and growing visitor numbers makes Torquay a promising place to consider for your next investment.
10. Lymington
Tenth on our list is Lymington, but don’t let its position fool you. This charming New Forest town stands out by appearing on both our forecasted popularity and rising stars lists, indicating that it’s not only expected to maintain strong search interest — predicted at 2,683 searches for hotels — but also experiencing a remarkable growth rate of 27.76%.
Lymington is renowned for its stunning waterfront and Georgian architecture. The town’s marina, which caters to a range of boating enthusiasts, is a central feature, contributing to its appeal as a desirable location. The surrounding New Forest provides a lush, green backdrop, making it an ideal spot for outdoor activities and nature lovers.
As a “Smaller Other Coastal Town” with a “Lower Deprivation Working” status, Lymington boasts a more affluent and stable economic environment compared to places like Blackpool. This unique combination presents an enticing investment opportunity that could attract a more upscale or niche market.
Coastal towns to avoid for hotel room investment
While certain coastal towns may appear attractive on the surface, the current market trends suggest otherwise. Here are three towns where you might want to think twice before investing, given the significant downturn in consumer interest.
1. Porthcawl
Porthcawl might not be your best bet right now. This South Wales seaside town has seen a steep decline in consumer interest, with searches dropping nearly 50%. Despite its charm, the town’s low demand suggests it could be a risky investment unless significant revitalisation happens soon.
2. Lowestoft
Located in Suffolk, Lowestoft is another town to approach with caution. With a 43.51% decline in hotel search interest, the numbers aren’t encouraging. The falling demand raises red flags for potential investors looking for a solid return on investment.
3. Ventnor
Ventnor, on the Isle of Wight, is known for its picturesque views, but unfortunately, it’s not drawing in as many potential visitors as it once did. With a 38.79% decrease in search interest, investing in a hotel here might not yield the returns you’re hoping for. Despite its beauty, the demand just isn’t there right now.
Unlock your investment potential with Alesco
In conclusion, investing in individual hotel rooms can be an exciting and practical way to tap into the hospitality market without the challenges of owning an entire hotel. This approach offers a more manageable entry point, allowing you to enjoy the benefits of rental income and property appreciation while avoiding the complexities of running a large operation.
The UK’s coastal towns are particularly enticing for this kind of investment. From the lively atmosphere of Blackpool to the charming streets of Whitby and the picturesque scenery of Weymouth, each location has its unique appeal. Our shared data highlights promising opportunities where demand is strong, making them ideal for your investment journey.
If you’re looking to navigate this exciting investment landscape, Alesco is here to help. With over 25 years of experience in property investment, our team is dedicated to guiding both new and seasoned investors through every step of the process. We offer personalised support from a dedicated investment consultant, ensuring you make informed decisions and maximise your returns.
Contact us today and take the first step toward a successful hotel room investment journey.
Written by: Perry Jax
Experienced Marketing professional working in the real estate investments sector.
