Scottish ‘chain hotels’ outperform UK growth

By Scott Reid
Published on Wednesday 1 February 2012 00:00

Scottish hotels outperformed their English counterparts in the run-up to the New Year break with profit and occupancy levels on the rise, industry figures have revealed.

The market north of the Border was supported by strong performances in Edinburgh, which benefited from year-on-year growth in visitor numbers, and Aberdeen, where there was a boost from the business market.

As a result, profit per available room at Scottish hotels nudged up 0.1 per cent to £31.68 in December, according to the “HotStats” survey from TRI Hospitality Consulting. Across “provincial UK”, which excludes London, there was a 3.2 per cent fall in profit levels.

Average occupancy rates grew by 1.7 percentage points to 55.5 per cent in Scotland, compared with a single percentage point rise – albeit to a higher 57.4 per cent – for the UK as a whole.

The survey focuses on “chain hotels”, with the Scottish sample comprising 67 establishments with an average size of 150 bedrooms.

Jonathan Langston, managing director of TRI Hospitality Consulting, said: “Despite the overall decline in headline performance levels across the provinces, there continues to be some good news in primary locations such as Brighton, Edinburgh and Manchester.

“Whilst provincial hoteliers will continue to face challenges, it is hoped that 2012 will provide the opportunity to recover some lost ground.”

The survey comes in the wake of a warning last month that some Scottish hoteliers were struggling to stay in business because of the economic downturn.

Accountancy firm PKF’s monthly snapshot of hotels in the three and four-star categories showed revenues fell by 7.3 per cent in November as firms cut their prices to try to attract visitors.

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