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Aberdeen hotels fuller but earning less per room

Aberdeen
Aberdeen

Aberdeen hotel occupancy rates rose in July but there was a hefty drop in room rates, tourism market research specialist LJ Research said yesterday.

In its latest monthly review of the hotel markets in Aberdeen, Edinburgh and Glasgow, it said rooms in the Granite City were 68.2% filled last month.

This represents a 4.4% year-on-year improvement, despite a savage economic climate in Europe’s energy capital,

But average daily room rates were down by a colossal 18.1% to £65.07, with the industry benchmark revenue per available room (revpar) off by 14.5% at £44.36.

LJ Research reported increased room rates and revpar for both Edinburgh and Glasgow, but occupancy was down in Scotland’s two biggest cities.

Sean Morgan, the firm’s managing director, said: “July saw solid performance for Glasgow and Edinburgh following the EU referendum. In Aberdeen, we continue to see the consequences of the declining oil and gas market.

“Business confidence over the coming months will continue to be shifted by ongoing developments as lines are drawn for the negotiation of the UK’s departure from the EU.”