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Hoteliers in Scotland’s two largest cities – Glasgow and Edinburgh – have reported a ‘robust’ start to the year, while Aberdeen continues to struggle.
That’s according to the latest LJ Forecaster Scottish Intercity Report from tourism research firm LJ Research, which found demand for accommodation was highest in Glasgow where occupancy grew 2.1% to 64.8% in January compared with last year.
Some 59.4% of hotel rooms in Edinburgh were sold, slightly below last year’s level, while the lowest level of demand was apparent in Aberdeen where under half of the rooms were filled (46.8%) – the first time since the research began in 2009 and a drop of 24.5% on last year.
Room rates in Edinburgh increased by 5.9% as the average room rate (ARR) rose to £77.17. Glasgow also saw an increase in average room rates to £60.53 (1.7%), while ARR in Aberdeen fell 20% or more for the fourth consecutive month to £70.23.
Meanwhile, revenue per available room (RevPAR) increased in Edinburgh and Glasgow by 5.1% and 3.1%, respectively, but fell 45.1% to a new record low of £32.89 in Aberdeen.
Looking ahead, the report found that forward bookings in Glasgow for the next three months (February to April) were up 2%, while a few number of RBS Six Nations home rugby fixtures contributed to a significant decline of 8% for Edinburgh hotels in February.
In Aberdeen, the report said there were signs of diminished demand in the future as forward bookings for the next three months were down by 10% compared with last year.
Sean Morgan, managing director at LJ Research, said: “A continuation of positive performance for Glasgow and Edinburgh hoteliers in January following a strong finish to 2015 highlights a good degree of stability within Scotland’s two largest destinations.
“This is in stark contrast to Aberdeen where we have recorded two successive months of record low levels of hotel performance.
“Looking to the future, a steady stream of business and leisure events is continuing to drive up demand in Glasgow and, in doing so, helping to fill more weekday and weekend hotel rooms. Interest in the city will be further buoyed going forward following the recent promotional launch of the inaugural European Championships which Glasgow will co-host with Berlin in 2018.”
