Boost for Scottish hotels as revenues jump 10%

Scottish hotels have continued to outperform their English counterparts with the latest figures showing a double-digit rise in revenues.

Three and four-star hotels are faring well. Picture: TSPL

The monthly survey of three and four-star hotels by accountant BDO found that Scottish rooms yield – the industry measure of revenue – rose by an average of 10 per cent in April, compared to an increase of 5.6 per cent in the UK regions.

Occupancy rates at Scottish hotels actually increased by less than those south of the Border, suggesting they were better able to put up prices to grow takings.

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Aberdeen and Glasgow led the way, with increases in revenue of 21.9 per cent and 10.6 per cent respectively, while Edinburgh and Inverness saw more modest gains.

Alastair Rae, a partner at BDO specialising in hospitality, said Aberdeen’s average room yield of £68.20 was the highest outside London. The Granite City hosted an oil and gas conference during the month, and the hospitality sector is an ongoing beneficiary of the boom in offshore activity.

Rae added: “The increase in revenue in Glasgow is extremely positive, with the city’s outstanding conference activity paying dividends. It was recently reported that conferences have brought £1 billion worth of business to the city over the last decade and the increase in revenue and occupancy during April are both signs of the success of conferences for the prosperity of Glasgow’s hotel sector.”

He said signs the economy is improving and a favourable exchange rate against the euro should bring more overseas visitors to Scotland this summer.