Scottish hotels lose out to Welsh rivals

Scottish hotels saw occupancy and revenues fall in March, underperforming the rest of the UK and highlighting the “fragility” of the sector.

The latest figures from accountancy firm PKF show Edinburgh hoteliers fared the worst, as even a drop in prices could not persuade tourists to stay in the capital.

The news marks a reversal in fortunes for Scotland’s hotels, which until recently had been enjoying better occupancy and revenue growth than those south of the Border.

Occupancy rates in Scotland fell by 0.1 per cent during March to 66.6 per cent - the lowest rate for any part of the UK – compared with an increase of 1.3 per cent in England. Rooms yield, the industry measure of revenue, fell by 0.7 per cent in Scotland to £42.14. In England it was down 0.5 per cent to £41.13.

Wales was the main winner, as occupancy soared by 7.4 per cent and revenues rose 10.3 per cent to £42.88.

PKF hospitality industry expert Alastair Rae said: “These figures reveal the fragility experienced in the Scottish hotel sector with falls in occupancy and rooms yield against the UK wide trend of an increase in both.

“Occupancy is the lowest among the four UK regions whilst revenue, which is usually higher overall in Scotland, is now on a par with the rest of Britain.”