The latest Scottish hotel market research findings from accountant and business advisor BDO paint another bleak picture for Aberdeen.
BDO said the Granite City’s hotels continued to be in the doldrums during March, suffering a 43% year-on-year slump in revenue.
Occupancy in Europe’s energy capital was down by 17.1% as the local market continued to suffer the impact of lower oil prices on the north-east economy.
By contrast, revenue in Edinburgh and Glasgow were up by 8.3% and 12% respectively.
Inverness had almost static revenue, increasing just 0.1%.
Edinburgh hotels enjoyed a 3.24% rise in occupancy during March, with Inverness and Glasgow down by 1.5% and 2% respectively.
BDO said Scotland was the only part of the UK that saw an overall revenue drop – the figure was down by 4% north of the border – due to the “very large decrease in Aberdeen’s performance”.
Alastair Rae, head of BDO’s audit practice in Scotland, added: “The early Easter and the Six Nations rugby helped Edinburgh increase revenues from leisure activities, while Glasgow benefited from a number of concerts and events during the month.
“For Inverness, the month was a steady as she goes period with little change in occupancy or revenue.
“For Aberdeen’s hospitality sector the situation remains very difficult. The considerable drop in revenue remains quite stark and is obviously linked to the double digit decline in occupancy.
“Although Aberdeen’s revenue is falling from a very high figure, a 43% drop in year-on-year numbers is a concern.”
