Edinburgh hotel sector enjoys ‘remarkable’ growth

Average room rates in Edinburgh rose almost 11% in June. Picture: Steven Scott Taylor
Average room rates in Edinburgh rose almost 11% in June. Picture: Steven Scott Taylor
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The contrasting fortunes of Scotland’s hotel sector continued in June, with “remarkable” growth for Edinburgh but drops in both Glasgow and Aberdeen, research today has found.

According to the latest monthly Scottish Intercity Report from tourism consultant LJ Research, 93.3 per cent of all available hotel rooms in Edinburgh were occupied during the month.

The average room rate (ARR) in the Scottish capital reached £125.69, a 10.8 per cent jump from the same month in 2015, and marking the highest June room rate recorded since the start of the Edinburgh LJ Forecaster hotel study in 2005.

Factoring in the occupancy and room-rate performance, revenue per available room (RevPAR) in the city was up by what LJ Research called a “whopping” 13.8 per cent on last year at £117.28.

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In Glasgow, room occupancy stood at 85.9 per cent, down 7.4 per cent on June 2015. Furthermore, at £80.03, the average room rate in Glasgow was also down, by 0.7 per cent from 12 months previously, leading to the city’s RevPAR being down by 8.3 per cent.

Turning to Aberdeen, average room occupancy was 70.8 per cent, and at year-on-year growth of 2.4 per cent continued the small increase seen in May.

“However, hotel performance in June overall was still significantly below the levels recorded before the hefty fall in oil prices with ARR at £67.42, down by 21.9 per cent compared to last year, and RevPAR at £47.71, down 20 per cent,” LJ Research said.

Sean Morgan, managing director at the consultancy, which has been bought by London peer STR, said: “June saw another month of contrasting fortunes for hoteliers in Scotland’s largest cities.”