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Aberdeen’s hotel sector has seen a resurgence of investor demand and new hotel operators as a result of recovering oil prices and major infrastructure projects.
According to real estate advisor Savills the improving outlook for Aberdeen is attracting more investor interest, particularly from overseas, who recognise a window of opportunity to acquire assets at a discount.
Savills suggests Aberdeen will see RevPAR (revenue per available hotel room, year-on-year) move into positive territory in the second half of 2018 for the first time since 2014.
The firm describes RevPAR as hitting ‘rock bottom’ in Q1 2016 as a result of a fall in both average room and occupancy rates that followed the oil crash.
Hotel investment volumes in the city totalled £12.25m in 2017 across three deals, following a year of inactivity in 2016, and Savills suggests this trend will continue to build momentum in 2018.
Steven Fyfe, associate director in the hotels agency at Savills, said: “While there has been a historical dominance and reliance on the oil industry, there are efforts to diversify Aberdeen’s economy and this will prove positive for hotel operational performance over the longer term.”
