Scottish hotels report negative performance in November

City centre hotels in Scotland reported year-on-year decreases in occupancy and room rates, according to latest figures released today.

The monthly LJ Forecaster Scottish Intercity Report – from tourism market research firm LJ research – found that demand for accommodation was highest in Glasgow, with hoteliers selling 86.4% of their total room stock – a 1.4% decrease compared with last year.

Room rates in Scotland’s largest city underwent a much larger fall of 7.8% compared with last year as Glasgow hoteliers achieved an average room rate (ARR) of £75.70. Revenue per available room (RevPAR) dropped by 9% compared with last year to £65.50.

However, the forecast said that, as has been the trend throughout 2015, soaring levels of growth compared to 2013 were evident with the November 2015 RevPAR figure in Glasgow some 20% above that of two years ago.

Meanwhile in Edinburgh, average occupancy was down 0.6% to to 80.5%, while room rates fell 4% – despite this, the ARR of £84.76 was the highest amongst the three Scottish cities. Hotel yield fell fell by 4.5% as RevPAR declined to £68.23.

Hoteliers in Edinburgh and Glasgow identified corporate and leisure events as significant factors influencing the downturn in November.

The cancellation of the traditional autumn international rugby tests at Murrayfield – owing to the recent 2015 Rugby World Cup – dampened demand in Edinburgh. Whilst in Glasgow, there was absence of a biennial conference.

Despite bad results, the forecast said that things are still looking up for next few months in Glasgow and Edinburgh as the level of forward bookings for December and January outstripped those of a year ago.

Reflecting the ongoing downturn in the oil and gas sector, Aberdeen hotels continued to suffer as average occupancy fell year-on-year for the 12th consecutive month.

Some 68.5% of all hotel rooms in Aberdeen were sold during the month, ann 11.5% fall compared with last year. ARR fell by 21.3%, while RevPAR slumped by 30.3% to £52.45 – slightly above the historic low of £49.18 recorded in October.

Sean Morgan, managing director at LJ Research, said: “The importance of business and leisure events in stoking demand for a destination was underlined this month as Glasgow and Edinburgh hoteliers saw reductions in RevPAR linked, at least in part, to a reduced events schedule.

“This outcome coupled with another month of sizeable year-on-year reductions in Aberdeen highlights a challenging month for hotels in Scotland’s three key cities.”