Hotel Occupancy drops 18% in Aberdeen but Edinburgh holds its own

April 7th, 2016 | Posted in: Hotel News

An annual review of the Scottish hotel activity by accountants BDO has revealed that the downturn experienced in the Aberdeen oil industry has impacted very negatively on its hotel occupancy and room revenues. Occupancy dropped to 64%, a decline of 18%, while revenues dropped to £53.60 from £68.71.
However Alastair Rae, of BDO was quick to point out, “Despite a 22 per cent revenue fall year on year Aberdeen still has a higher figure at £53.60 than Glasgow at £51.82. This reflects the very rarefied market that Aberdeen occupied prior to the fall in the oil price.” He also suggested that as oil prices were expected to stabilise that the downward trend with regard to Aberdeen’s occupancy and revenues may reduce.
BDO’s report shows that occupancy in Scottish hotels was down 0.9%, and annual revenues fell 2.2% on average. Room occupancy in Edinburgh rose 3.1%, in Glasgow it was up 0.3% and in Inverness it was down 1.7%.
Edinburgh had the fifth highest room revenue across of any city outside London showing a 0.5% increase on last year, while Glasgow’s room revenues saw a tiny increase of 0.1% and Inverness an increase of 4.3%. In revenue terms, room yields in Edinburgh came in at £60.27 and Glasgow came in at £51.82; while Inverness achieved £55.26. Rae concluded: “Scotland’s hospitality sector had a pretty good year in 2015 with the exception of Aberdeen and it is that city’s figures which have skewed the overall performance of the hotel industry in these numbers.”


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