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Scottish Hotels have sizzling month
13 August 2010
From Business 7 Insider Magazine
Occupancy up in June
The Scottish hotel sector is recovering from a dismal spring period with occupancy and room rate yields rising faster than the rest of the UK.
Research from accountancy firm PKF found occupancy levels in June were up 4.6 per cent with room yield growing 7.5 per cent.
Glasgow enjoyed the largest single gain in occupancy at 8.7 per cent, with Aberdeen up by 4.6 per cent and Edinburgh by 3.4 per cent.
Yield in Glasgow increased by 11.8 per cent with Edinburgh at 5.9 per cent and Aberdeen rising one per cent.
Alastair Rae, a partner in the real estate and hospitality sector at PKF, said: "These figures reveal a positive bounce back for the hospitality sector in Scotland which had experienced a relatively gloomy spring.
"Whilst occupancy and rooms yield has increased in most of the UK during June, the Scottish increase is the greatest and the yield at s62.47 is s14 higher than the UK average.
"Of course hotels need to have outstanding summer figures if they are to survive, but these numbers reveal a stronger market than might have been anticipated from the data so far this year.
"Whether this is an indication that the sector has turned the corner remains to be seen, but it is positive at least in the short term.
However there remains continued investment in the sector which shows that Scotland is perceived as a strong market for the future.
"Indeed the last PKF Hotel Britain report found that Scotland was the only part of the UK to record an increase in compound annual growth rate for rooms yield over the period from 2005-2009."
PKFs hotel trends surveys have been published since the early 1970's and features a broad range of hotels in the 3 to 4 star categories.