Glasgow 2014: Encouraging figures for city’s hotels

GLASGOW received a pre-Games boost yesterday with new figures showing it was the only Scottish city where hoteliers enjoyed a rise in occupancy and revenue.

A survey revealed that Glasgow's room yield rose in April by 10.8 per cent to £45.73. Picture: Robert Perry

The BDO Scottish Hotel Survey revealed that Glasgow’s room yield – the industry term for revenue – rose in April by 10.8 per cent to £45.73, the strongest increase anywhere north of the Border, while price rises have been blamed for quieter hotels elsewhere.

Occupancy levels dipped in Edinburgh, Aberdeen and Inverness, but on the whole room yield increased. Only Inverness saw a decline, from £34.51 to £33.99.

Revenue in Aberdeen was the highest anywhere outside London at £70, up 6.8 per cent. Room yield in Edinburgh rose 6.4 per cent to £52.73.

Alastair Rae, hospitality and leisure partner at BDO, said the dip in occupancy was probably the result of those increases in revenue.

“As prices rise demand tends to slacken and so you often see occupancy levels fall as rooms get to their optimum price,” Rae explained. “The exception to this was Glasgow, which had an increase in occupancy and revenue indicating a jump in demand in the city.

“The continuing good news for the hospitality sector can be seen across the country’s three main cities with a welcome double-digit revenue increase in Glasgow during April as the city gears up for its summer of sporting events. Given that demand in Glasgow will soar in July as the Commonwealth Games begin, this is an excellent start to the summer season.”