WASHINGTON: Hotel revenues in Aberdeen were 43 per cent lower in January than the same month in 2015, while Edinburgh and Inverness showed healthy growth, according to the latest industry survey by advisers BDO. Occupancy in Aberdeen hotels fell by 16.2 per cent as the downturn in business travel continued to hit the sector in the north-east.
Alastair Rae, head of BDO’s audit practice in Scotland, said: “Aberdeen continues to suffer and, although there are signs of the oil price stabilising, it is apparent that the hospitality sector remains under strain due to the dramatic reduction in business travel. I don’t believe this will pick up in the immediate future but, perhaps in a year or so, there may be something of a return to fortune for the market in Aberdeen.”
He went on: “The hospitality sector is strongly affected by economic uncertainty and until the referendum is resolved and the outcome of the financial recovery in Scotland is clear I suspect we will see more fluctuating performances. However, Scotland’s hoteliers have shown themselves to be resilient in coping with the last few years.”
The monthly hotel audit found that occupancy and revenue in Edinburgh rose by 16.2per cent and 36.2per cent respectively in January compared with a year earlier. In Inverness the increase in occupancy was 10.4per cent and revenue rose 13.3per cent. Glasgow’s uplift was limited to 1.8per cent in occupancy and 8.3per cent in revenue. Scotland’s performance was comparable to the rest of the UK with occupancy of 62.7 per cent, the same as regional UK, and revenue per room of £32.94 against £34.59 for regional UK.
