Scotland’s hotels outperforming UK counterparts

The hotel industry in Scotland has continued to outperform the rest of the UK, according to a report.

By ANGUS HOWARTH Friday, 23rd August 2013, 3:50 pm

The Hilton Hotel in Glasgow. Picture: TSPL

Income and occupancy figures were higher in Scotland than England or Wales in June this year, according to the monthly hotel survey by accountants and business advisers BDO LLP.

Figures for Scotland were also greater than those of the regional UK (UK data minus London) in the report which compares June 2013 with the same month last year.

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Since March, income and occupancy figures for Scotland have been greater than the rest of UK.

Scotland managed to achieve the highest occupancy rate for June this year of 81% despite being the only region to record a decrease (-0.3%). Occupancy was 76.9% in regional UK, 76.1% in England and 79.5% in Wales.

Room yield or revenue in Scotland rose by 4.3% to £63.93 in June 2013 compared with the same month the previous year.

In Wales there was a 9.2% increase to £42.31, England was boosted by 2.3% to £46.34 and regional UK also rose by 2.8% to £48.80.

Edinburgh and Aberdeen were ranked third and fourth highest respectively in the UK for revenue, after Windsor and Oxford.

There was a 19% revenue increase for Aberdeen in June 2013, which has been partly attributed to the city hosting the PIPER25 conference, a three-day event on safety in the oil and gas industry, according to BDO LLP.

A programme of concerts and events such as a Neil Young concert was identified by BDO LLP as responsible for a 11.6% boost to revenue in Glasgow while Inverness hotels maintained occupancy rates but recorded a 5.8% in revenue which indicated the use of discounted rates.

Alastair Rae, from BDO, said: “The continued improvement in revenue among Scottish hotels appears to indicate that this is turning out to be a better season for the sector.

“Despite a slight revenue fall in Edinburgh and a larger decline in Inverness, the overall figure for Scotland of £63.93 is substantially higher than the rest of the UK.

“Whilst one month’s data will not indicate a trend, we have now had Scottish occupancy and revenue figures ahead of the UK every month this year since March.