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Hotels in Scotland’s three largest cities reported a mixed month in May, according to the latest LJ Forecaster Scottish Intercity Report.
The research showed 86.3% of all hotel rooms available in Edinburgh were occupied during the month, compared with 80.8% in Glasgow and 63.9% in Aberdeen.
The figures meant that Edinburgh and Glasgow hotels welcomed fewer guests in May 2016 compared with this time last year as occupancy fell 1.2% and 5.4%, respectively.
Aberdeen occupancy rose 2.2% – the first occupancy growth recorded in the city in 18 months, but this was still significantly below the pre-oil price slump figures from May 2014, May 2013 and earlier.
In Edinburgh, lower room occupancy contrasted with a rise in average room rates (ARR), which stood at £108.75 – a 5.9% increase compared with May 2015. The figure signalled the highest May room rate recorded since the inception of the study in 2005.
Edinburgh’s revenue per available room (RevPAR) was 4.7% above last year at £93.84.
Glasgow’s lower occupancy levels were accompanied by lower ARR. At £71.43, the average price for a room was down by 1.4% compared with last year. As a result, RevPAR fell by 6.8% compared with last year and by 7.4% compared to May 2014.
The study highlighted that in 2014 Glasgow’s hotel performance was “extraordinarily strong” as RevPAR grew by around 25%. It said the market continues to operate well above pre-2014 levels.
Meanwhile, whilst Aberdeen’s hoteliers noted a small increase in room occupancy, hotel performance overall was still significantly below the levels recorded when oil prices were higher as double digit falls in ARR continued to hit the sector.
At £66.19, the average price for a room per night in Aberdeen was down by 24.2% during May. Despite this, the small occupancy growth in the city contributed to the lowest RevPAR reduction of this year, at 22.5%.
Sean Morgan, managing director at LJ Research, said: “May 2016 evidently brought mixed fortunes for Scotland’s city-centre hoteliers. In Edinburgh, a slightly lower occupancy rate was easily acceptable alongside record high room rates.
“Conversely in Aberdeen, some occupancy growth was overall unimpressive when offset against another month of steep room rate reductions. In Glasgow performance was affected by lower occupancy compared to the last few years.
