Top Coastal and Rural Towns in the UK for Thriving Hospitality Property Investments

The UK’s tourism sector is evolving, with visitors increasingly seeking coastal charm, rural tranquility, and rich heritage experiences. This shift creates promising opportunities for hospitality property investments in locations where demand for holiday accommodation is rising. Identifying the right towns can make a significant difference for investors looking to benefit from growing tourism trends. This article highlights some of the best UK locations where hospitality properties are thriving, focusing on coastal towns, rural escapes, and heritage destinations.

Coastal town with vibrant beach huts and sandy shore

Top Coastal and Rural Towns in the UK with Growing Tourism Demand

Coastal towns have long attracted holidaymakers, but recent trends show a renewed interest in less crowded, authentic seaside experiences. These towns offer a mix of natural beauty, local culture, and accessibility, making them strong candidates for hospitality property investment.

Whitby, North Yorkshire

Whitby is a historic fishing town famous for its dramatic coastline and connections to Bram Stoker’s Dracula. The town’s popularity has surged, driven by its picturesque harbor, seafood restaurants, and festivals. Hospitality properties here, such as guesthouses and boutique hotels, benefit from year-round visitors attracted by both the coast and nearby North York Moors National Park.

St Ives, Cornwall

Known for its art scene and stunning beaches, St Ives combines natural beauty with cultural appeal. The town’s hospitality sector has grown steadily, supported by visitors seeking coastal walks, galleries, and local cuisine. Properties near the harbor or beaches tend to command premium rates, reflecting strong demand for holiday lets and boutique accommodation.

Southwold, Suffolk

Southwold offers a quieter alternative to busier seaside resorts. Its charming pier, independent shops, and brewery attract visitors looking for a relaxed coastal break. The town’s hospitality market is buoyed by a loyal visitor base and increasing interest in sustainable tourism. Investing in small hotels or holiday cottages here can yield steady returns.

Rural Escapes with Increasing Visitor Numbers

Rural areas are becoming hotspots for tourists wanting to escape city life and enjoy nature. Hospitality properties in these locations often appeal to families, walkers, and those seeking wellness retreats.

The Cotswolds, Gloucestershire/Oxfordshire

The Cotswolds remain a top destination for rural tourism, with its rolling hills, historic villages, and country pubs. Demand for holiday cottages and boutique inns has grown as visitors seek authentic English countryside experiences. Properties in towns like Chipping Campden and Bourton-on-the-Water benefit from strong occupancy rates, especially during spring and autumn.

Lake District, Cumbria

The Lake District attracts millions annually for its lakes, mountains, and outdoor activities. Hospitality properties here range from luxury lodges to cozy B&Bs. Towns such as Keswick and Ambleside see consistent visitor numbers, supported by hiking trails and cultural events. Investment in well-located accommodation can tap into both domestic and international tourism.

Northumberland National Park

This less crowded rural area offers dramatic landscapes and historic sites like Hadrian’s Wall. The park’s growing popularity among walkers and history enthusiasts has increased demand for holiday lets and small hotels. Towns like Hexham provide a base for exploring the region, making hospitality properties here a smart choice for investors.

Traditional stone cottage in a green rural village setting

Heritage Destinations with Strong Visitor Appeal

Heritage towns combine history, architecture, and culture, attracting visitors interested in exploring the UK’s past. Hospitality properties in these areas often benefit from steady tourism throughout the year.

Bath, Somerset

Bath’s Roman baths, Georgian architecture, and spa culture make it a perennial favourite. The city’s hospitality sector includes luxury hotels, boutique guesthouses, and serviced apartments. Its UNESCO World Heritage status ensures a steady flow of tourists, supporting strong rental yields for hospitality properties.

Stratford-upon-Avon, Warwickshire

As Shakespeare’s birthplace, Stratford-upon-Avon draws visitors keen on theatre and history. The town’s hospitality market thrives on cultural tourism, with many properties catering to short breaks and theatre-goers. Investment opportunities include period townhouses converted into guest accommodation.

York, North Yorkshire

York’s medieval walls, Gothic cathedral, and Viking heritage attract millions annually. The city offers a diverse hospitality market, from historic inns to modern hotels. Properties near the city centre or close to key attractions tend to perform well, benefiting from both leisure and business tourism.

Factors to Consider When Investing in Hospitality Properties

Choosing the right location is only part of the equation. Investors should also consider to find Top Coastal and Rural Towns in the UK

• Accessibility: Proximity to transport links like train stations and airports increases visitor numbers.

• Seasonality: Coastal towns may have peak seasons, while rural and heritage destinations often enjoy more balanced year-round demand.

• Local Amenities: Restaurants, shops, and attractions nearby enhance guest experience and property appeal.

• Planning Regulations: Understanding local rules for holiday lets and property modifications is essential.

• Sustainability: Eco-friendly properties are increasingly popular and can command higher rates.

  
  

Final Thoughts on Hospitality Property Investment in the UK