RSM: Fringe Festival gives Scotland’s hotel sector an August surge
Scotland’s hotel industry experienced a robust August, with increased room rates, higher occupancy, and a boost in gross operating profits, largely driven by popular events like the Edinburgh Fringe Festival, according to RSM Hotels Tracker.
The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy rates of hotels in Scotland rose from 82.9% (July) to 86.7% (August), compared to a fall from 83% (July) to 79.6% (August) in the UK.
Average daily rates (ADR) of occupied rooms jumped from £150.85 (July) to £170.53 (August) in Scotland, while rates of UK hotels declined from £165.57 to £145.44.
Revenue per available room (RevPAR) saw a significant increase from £125.13 (July) to £147.81 (August) in Scotland, whereas this fell from £137.44 (July) to £115.83 (August) in the UK.
Claire Monaghan, partner in RSM UK’s Edinburgh office, said: “August is typically the weakest of the summer months in the hotel sector, so it is really encouraging to see the uptick in Scotland’s occupancy rates, average daily rates and revenue per available room being ahead of the UK, indicative that demand remains strong.
“After seeing positive figures in May, the start of the summer holiday season in Scotland, it is great that August has continued this upward trend, which will be welcome news for Scottish hoteliers, especially as rising costs have continued to hit the sector.
“However, August rates will have been bolstered by more international tourists visiting the major cities in Scotland for a number of world-renowned events.
“With Edinburgh Fringe Festival and the UCI Championships taking place at the same time in Glasgow, demand for hotels increased rapidly, with limited discounts available due to this demand. The boost in visitors during this time period undoubtedly helped performance in Scotland’s hotel sector.”
She added: “Following the Bank of England’s recent decision to freeze interest rates, combined with an improvement in consumer confidence and the easing of inflation, Scottish hoteliers will be hoping for continued demand moving into the Autumn/Winter trading period.”