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Hoteliers in Scotland have continued to report mixed results in July, according to the latest LJ Forecaster Scottish Intercity Report.
The report found that there was a positive performance in Edinburgh, but an expected decline in Glasgow – one year on from the Commonwealth Games – and sustained losses in Aberdeen.
Edinburgh hoteliers achieved the highest room occupancy with 91.6% of hotel rooms sold in July. Average room rate (ARR) in the city was also up 10.3% from last July to £126.30 which lead to the city’s third consecutive month of ARR over £100.
Revenue per available room (RevPAR) in Edinburgh was £115.66, up 9.6% when compared with the same month last year.
The good results in Edinburgh were driven by a series of festivals that took place during the month including the Edinburgh Art Festival and the Edinburgh Jazz & Blues Festival, while hoteliers also benefitted from increased demand due to the Scottish Open Golf in nearby Gullane and The 2015 Open at St Andrews.
Glasgow reported an unexpected result as the city sold 1.1% more rooms this year than in July 2014 – a month which registered an impressive 8% rise on July 2013 due to hosting the Commonwealth Games.
Despite this, room revenues in Glasgow tumbled from their record-high level last year as ARR dropped by 22.3%.
RevPAR for Glasgow stood at £65.18, which, although 21.5% below last year, remained some 30% higher than in July 2013. The report said that this growth compared to July 2013 highlights the extent of a longer term path of growth in the hotel sector in Glasgow.
Meanwhile, Aberdeen continued its decline as occupancy fell to 65.3% compared with 81.7% in July last year. ARR dropped to 18.9% to £79.43, while RevPAR fell 35.2% from £80.04 in July 2014 to £51.86
Sean Morgan, managing director at LJ Research, said: “The Met Office defines July 2015 as cool, dull and wet. For hoteliers in Edinburgh it will be remembered more fondly as the golf and start of the summer festivals contributed to a successful month.
“One year on from the Commonwealth Games the negative performance in Glasgow belies an upbeat trend in the city. With significant impact from business and leisure events in the coming months, the strong demand for accommodation recorded in July is unlikely to abate.”
Morgan said that the Aberdeen hotel performance has again been heavily affected by a global oversupply of oil.
