Scotland’s flagging hotel industr’s Easter boost

SCOTTISH mid-market hotels received a substantial revenue boost in March, with Edinburgh and Aberdeen reporting the best performances.

New figures from accountancy firm BDO show that room yield – the industry’s measure for income – rose by 5.9 per cent across Scotland’s three- and four-star hotels, bucking the wider UK trend. Occupancy rose by a more modest 1.6 per cent.

By comparison, room yields in England were down slightly, while those in Wales suffered a 6.8 per cent decline. For the UK as a whole, room yields edged up by 0.5 per cent.

There was some polarisation within the Scottish figures, with Edinburgh hotels posting a 13.7 per cent hike in revenues, and Aberdeen only slightly behind at 13.3 per cent.

But revenues dipped in both Glasgow and Inverness.

Alastair Rae, leisure and hospitality partner at BDO, welcomed the improvement in Edinburgh, which has reported relatively-weak levels of occupancy and revenue in recent months.

The increase in Edinburgh was partially due to a lower comparative figure the previous year, plus the early timing of Easter that brought a surge in tourism. Even so, the capital’s hotel sector clearly “remains stretched” and is some way from a prolonged period of growth.

“Aberdeen remains buoyant due to the continued high oil price, which supports the wider economy, and benefited further from specific events during March including the Expo for Overseas Job Opportunities and the Young Coastal Scientist and Engineers Conference,” Rae said.