Scottish hotel performance slips in November

By Liam Garrahan contact

- Last updated on GMT

Scottish hotel performance slips in November

Related tags: Average room rate, Hotel, Scotland

Scottish hotel performance showed a year-on-year decrease in November as occupancy and room rates across Edinburgh, Glasgow and Aberdeen tumbled, according to the latest LJ Forecaster Scottish Intercity Report.

Hoteliers in Edinburgh and Glasgow identified that the lack of events held in the cities took its toll on the figures, with traditional rugby internationals not happening in the capital and a lack of biennial conferences in Glasgow being cited among the causes, while Abderdeen’s woes are attributed to the city’s declining oil and gas industry.

An average room rate of £75.70 in Glasgow represented a 7.8 per cent decrease for Scotland’s second city, although on 17 different occasions room occupancy hit 90 per cent or more despite a 1.4 per cent year-on-year decrease overall.

Average room occupancy in Edinburgh reached 80.5 per cent, representing a 0.6 per cent decrease compared to the same period last year. Room rates in the city centre also demonstrated a year-on-year decline, but at £84.76 the average room rate was the highest of the three cities. RevPAR dropped 4.5 per cent to £68.23.

Glasgow and Edinburgh can look at the future positively with forward-bookings for December and January at a higher number than last year.

New shift structures for oil workers in Aberdeen are seen as an issue that has contributed to a reduced demand in accommodation in the city.

Average occupancy showed a year-on-year decline for a 12th​ consecutive month. Occupancy levelled out at 68.5 per cent, a fall of 11.5 per cent compared to November 2014. The Granite City’s average room rate fell even further, registering a 21.3 per cent decrease year-on-year. A RevPAR of £52.45 represented a huge year-on-year decrease of 30.3 per cent.

Sean Morgan, managing director at LJ Research, said: “The importance of business and leisure events in stoking demand for a destination was underlined this month as Glasgow and Edinburgh hoteliers saw reductions in RevPAR linked, at least in part, to a reduced events schedule.

“This outcome coupled with another month of sizeable year-on-year reductions in Aberdeen highlights a challenging month for hotels in Scotland’s three key cities.

“The future for Aberdeen hotels continues to look challenging with Brent crude at an 11-year low, and forward bookings well below previous years. In Glasgow and Edinburgh, there are positive indications of growth for the Festive Season. The December performance will help shape prospects for 2016, the Year of Innovation, Architecture and Design – themes which Scotland’s key cities will be keen to capitalise on.”

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