The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy of Scottish hotels rose from 82.1% to 85.7% in July year-on-year, above wider UK occupancy levels during the same period (84.8%).

Despite the increase in demand, average daily rates (ADR) of occupied rooms were flat in Scotland and across the UK, at £170.30 and £172.79 respectively. RevPAR of Scottish hotels rose from £123.92 to £145.95 in July year-on-year, in line with wider UK growth seen for the same period.

Gross operating profits (GOP) of Scottish hotels were up from 42.4% to 45.2% in July year-on-year, above pre-pandemic levels.

Claire Monaghan, partner in RSM UK’s Edinburgh office, said: “Scotland’s hotels reaped the rewards of another strong month in July, surpassing the UK’s occupancy levels for the same period, while profitability also grew year-on-year.

“Although average daily rates didn’t see their usual uptick in July, this is likely due to stronger than normal growth in June, boosted by Taylor Swift’s Eras Tour at Murrayfield Stadium.

“With the Edinburgh Fringe Festival returning in August and demand expected to tick up again, hoteliers are likely to end the summer on a high – exceeding industry expectations at the start of the year. This highlights the significance of music and cultural events in Scotland and their impact on the leisure, hospitality and hotel industry.”

She added: “Following Oasis’ announcement of a highly sought-after reunion at Murrayfield next August, at the same time as the Fringe Festival, hoteliers will be faced with the challenge of meeting consumer demand during an already exceptionally busy month.

“Many businesses are also concerned the City of Edinburgh Council’s incoming tourist tax will add further cost pressures, and make Edinburgh less competitive compared to other UK and European destinations. However, this convergence of high-profile events and tax changes also presents an opportunity for the capital to innovate and enhance its hotel offering, fund improvements in local infrastructure and tourism, and generate higher occupancy and revenues across Scotland.”

Thomas Pugh, economist at RSM UK, added: “Another strong month from the hotel sector is an additional sign that consumer spending is starting to pick up.

“A run of real wage increases, tax cuts by the previous government and now lower interest rates have all helped to boost households’ disposable income. What’s more, consumer confidence continues to improve, which seems to be helping to boost spending on hospitality services.

“A sharp drop in accommodation services inflation was the reason behind the significant slowdown in services inflation last month, but demand for hospitality services clearly remains strong and suggests that services inflation may rebound slightly in August.

“A rise in services inflation in August will provide the Bank of England with a good excuse not to cut interest rates again in September – we think the next opportunity for a rate cut will be in November.”