Scotland business

Scottish hotels 'outperform rest of UK'

Hotel room Image copyright Thinkstock

Hotel occupancy and revenue fell in Scotland in September but remained higher than any other area of the UK, according to a regular survey.

Accountants BDO found occupancy fell year-on-year by 1% to 87.3% - higher than the rates recorded for England, Wales and regional UK.

Rooms yield stood at £65.90 in Scotland, well ahead of other UK areas.

Edinburgh and Glasgow had the highest occupancy in the UK, including London, at 92.1% and 91.6% respectively.

Aberdeen, Edinburgh and Glasgow experienced double-digit falls in revenue, but all three cities remained in the top 10 of anywhere in the UK.

Only Inverness bucked the trend by seeing revenue increase by 8.8% to £62.35 per room.

'Reasonably confident'

Alastair Rae, from BDO, said: "Aberdeen aside, the drop in revenue in Edinburgh and Glasgow is due to very high numbers last year when Edinburgh was basking in a late festival rush as well as multiple major conferences, while Glasgow was still on a post-Commonwealth Games high.

"The country is becoming an all-year-round destination through a combination of being a fantastic tourist destination coupled with a major conference, concert and business centre.

"So despite these falls in revenue, the hospitality sector must be feeling reasonably confident for the rest of the year.

"Aberdeen is, of course, the exception and is still coming to terms with the fall in oil prices which make the hospitality sector highly vulnerable to price fluctuations.

"I would expect this situation to continue for some time to come."

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