OXFORD has risen up the ranks to be named one of the most desirable spots in the UK for hoteliers.

The city of dreaming spires has placed third in a study that searched the country for hotel investment hotspots.

Analysis carried out by property company Colliers International put Oxford just behind York and winning destination Chester. 

Peter Brunt, hotels director at the company's Bristol office, said Oxford emits a 'golden glow for buyers' thanks to its rich heritage and tourism industry. 

Last year the same index, which scrutinises 34 locations across the UK, placed Oxford at number 28. 

Mr Brunt said: “The data reveals the ever-changing nature of the UK hotels market.

“Oxford has really upped its game in the last year to make it into the top five.

"Oxford is often at the top of buyers’ wish lists when they talk to me. It has a golden glow for buyers because of the heritage that drives tremendous tourism demand for bed spaces.”

The company suggested the city's apparent vast improvement from last year was due to 'an increase in buyer demand interest, a low active pipeline in the city and good hotel market performance'.

Its analysis looked at nine factors including land prices, build costs, room occupancy and average daily rate.

Bristol and Edinburgh also ranked in the top five.