Fresh fears over the business case for the £107m Marischal Square development have been raised after it was revealed that hotel occupancy rates in Aberdeen have slumped by more than 10% in just 12 months.
The controversial Broad Street scheme is set to house a 126-room Residence Inn by Marriott- the firm’s first outpost in the Granite City.
But a new report from tourism market specialist LJ Research showed Aberdeen hotels sold just 66% of their rooms in October, compared to 77% a year ago.
Edinburgh and Glasgow hotels delivered modest gains last month.
The report also says revenue per available room (revpar) tumbled “unprecedentedly” to just £49.18- down by 37% on October 2014.
Now, objectors to the development have hit out at council “secrecy” over the financial aspects of the deal, questioning whether the downturn could end up leaving taxpayers out of pocket.
Lorna McHattie, of the Reject Marischal Square group, said: “With the deal so shrouded in secrecy, it’s certainly a worry.
“The council have never revealed the business plan for the development, so we don’t know what the chain will do in the short to medium term.
“But, if they aren’t making profit, it would seem likely that they would move out.”
The council will lease out Marischal Square from Aviva for £5m annually for 35 years when construction is completed in 2017.
They will collect rates from businesses that choose to locate in the centre.
Aberdeen City and Shire Hotels’ Association chairman Iain Watson said this week that there would be “no quick fix” for the challenged sector.
But council finance convener councillor Willie Young said he was confident Aberdeen’s economy would return to pre-slump levels.
He said: “Aberdeen has been very lucky and we are punching well above our weight.
“I think that there is every chance that the economy of Aberdeen will bounce back.
“The hotel rates are still well above a lot of other comparable cities in the UK, so I don’t think it will affect Marischal Square.
“I understand that they are suffering at the minute but if and when we get this cit
Marriott could not be contacted last night.