Scottish hotel sector outperforming UK

Year-on-year the number of people checking into hotels in Scotland was up 7.7% in April, compared with a 1.4% increase in England and a 3.2% increase in Wales.

Revenue for hotels in Scotland rose 6.8% during the month, in contrast to a 1.9% drop in England and a 0.4% rise in Wales, the monthly Scottish hotel survey by accountants PKF shows.

Leaving out London, the overall hotel occupancy rate in Scotland, Wales and England increased by 2.5%, although overall revenue fell 0.3%.

Alastair Rae, a partner in PKF's real estate and hospitality sector, said: "These figures indicate that the sector (in Scotland) continues to improve and, indeed, outperform the rest of the UK. There is considerable hope and expectation that the continued trend toward staycationing will benefit Scotland greatly this summer. This remains to be seen but the figures to date offer considerable hope."

Edinburgh saw the biggest increase in the number of hotel guests. Occupancy and revenue levels were both up by 12.1% compared with last April.

In Glasgow occupancy and revenue rates increased by a respective 3.9% and 3.7%, and increased in Aberdeen by a respective 0.4% and 1.6%.

Mr Rae said: "April 2011 marks a return to the pre-recession figures for Edinburgh, which the sector will undoubtedly welcome. Edinburgh remains the jewel in the crown for the sector and the continuing announcement of substantial growth in the hospitality sector in the city is testament to investors' confidence in the market.

"However, Aberdeen is also bouncing back and Glasgow continues to pro-actively attract visitors."

Occupancy and revenue levels for rooms under 40 dropped the most, by 0.6% and 7.0% respectively, in all areas outside London.