'Staycations' and festival a boost for hotels

Published on Wednesday 7 October 2009 20:56

EDINBURGH'S hotels benefited from an "enormously successful" festival season and posted the highest occupancy and revenue figures in the UK during August, according to new research.

During August, hotels in the Scottish capital recorded a 91.7 per cent occupancy rate – up from 89.4 per cent in 2008 – but rooms yield, the industry's measure of revenue, fell by 3.7 per cent to 107.16. By comparison, London's occupancy rate was 81.2 per cent, with a rooms yield of 91.24.

Experts said Edinburgh's figures were helped by the "stay-cation" trend, in which Britons holidayed in the UK.

Glasgow reported a 2.5 per cent fall in occupancy to 85 per cent, while Aberdeen dropped 8.5 per cent to 72.3 per cent. Rooms yield in Glasgow was down 19.3 per cent to 55.97, with Aberdeen's yield falling 9.3 per cent to 54.46.

Alastair Rae, a partner at PKF, which conducted the research, said Edinburgh's performance was "exceptional" in a recession. He added: "The numbers coming to Scotland remained high during August, with occupancy steady albeit with a slight softening of the rooms yield, indicating hoteliers' willingness to reduce prices to encourage volume through their hotels."

Peter Taylor, founder and chairman of the Townhouse Collection, said that his chain of four hotels in Edinburgh had returned a "good performance" over the summer.

The Bonham, Townhouse's hotel in Drumsheugh Gardens, posted an occupancy rate in line with the Edinburgh average but its rooms yield was higher.

Taylor said: "There was a slight drop off in corporate bookings, as you would expect, but we've always been very strong in leisure and so we had a successful summer."

Blythswood Square, the company's first hotel in Glasgow, is due to open at the end of the month. Taylor bought the B-listed former Royal Scottish Automobile Club headquarters in 2006 and pumped about 25 million into the project to create a 100-room hotel and spa.

JP Kavanagh, general manager of Edinburgh Sheraton hotel, said that his rooms yield had fallen because customers were "demanding value for their hard earned cash". He added: "But rooms account for about 60 per cent of our business and the other part, including our spa and restaurants, has performed even better than last year. We're pleased with the way the fourth quarter is looking."

Throughout Scotland hotels posted a 0.1 per cent decrease in occupancy to 84.4 per cent and an 8.4 per cent fall in rooms yield to 72.59. Rae added:

"These figures are encouraging for Edinburgh and Scotland, but less so for Glasgow and Aberdeen. Corporate spending remains subdued in both these markets."