Aberdeen hotel market shows signs of recovery

The hotel market in Aberdeen '“ hammered by the fallout from the depressed oil price '“ is showing signs that it may be improving, according to figures out today.

Occupancy levels at Aberdeen hotels are falling less sharply. Picture: Ian Rutherford

The monthly Scottish Intercity Report from Edinburgh-based tourism consultant LJ Research shows that hotels in the Granite City recorded the least steep reduction in occupancy in over a year.

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Plunging oil prices takes massive toll on Aberdeen hotels

Having recorded 12 months of consecutive double-digit decreases, Aberdeen hotels achieved an occupancy rate of 62.6 per cent in April which was down by only 2.5 per cent on last year. But the ongoing challenges faced by the sector in the city were highlighted by a fall of 26.8 per cent in average room rates over the past year to £67.74.

Steve Harris, chief executive of VisitAberdeenshire, said it was “promising that occupancy rates now appear to be levelling out”. Meanwhile, hotels in Glasgow recorded moderate growth and those in Edinburgh saw a flat performance.