The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy of Scottish hotels remained consistent in October year-on-year at 81%, slightly above the UK (80.7%) during the same period.

Average daily rates (ADR) of occupied rooms were also up in Scotland, from £127.30 to £133.09 in October year-on-year, while the UK saw a slight dip from £147.37 to £146.45. Gross operating profits were consistent year-on-year at 35% in October 2024, a small downtick from October 2023 (35.4%).

Stuart McCallum, partner and head of consumer markets in Scotland at RSM UK, said: “Scotland’s hotel industry continued to perform well in October, despite the usual seasonal drop expected at this time in the year.

“Mild weather and the October half term certainly boosted performance, as hoteliers maintained strong levels of occupancy and average daily rates, with Scotland edging above the wider UK market.

“This positive trend demonstrates stability within the sector, despite the added employment costs for hoteliers from the Autumn Budget and indeed yesterday’s Scottish Budget, which outlined changes to business rates relief which feel punitive rather than promising.

“Income tax also remains frozen until 2026, and therefore still less favourable than those south of the border, which puts hotels at risk of losing more talent in the run up to a busy Christmas period. But, Scotland has remained buoyant throughout the year and will likely continue in the run up to Christmas and New Year, given it attracts tourists from the UK and overseas due to the variety of unique and cultural experiences on offer, with the period now stretching from early November to mid-January.”

Stuart McCallum

He added: “The main challenge hoteliers face now will be looking to extend this part of the season to support demand, profitability and overall outlook for next year.

“We’ve recently seen examples of the market evolving and innovating to meet consumer demand, with The Social Hub Glasgow becoming the first multi-use space of its kind in the UK, offering hotel rooms, student accommodation, co-working spaces and leisure amenities. This will help to transform the hospitality landscape in Scotland and more widely across the UK, encouraging positive change and growth within the industry.”

Thomas Pugh, economist at RSM UK, added: “A relatively positive month for the hotel sector in October raises hopes that the recent increase in consumer spending that came through in Q3 has continued into Q4.

“Admittedly, survey data, such as the PMIs, has been weak in October and November, but much of this is probably related to the Budget rather than a reflection of a deterioration in underlying demand.

“We expect GDP growth to pick up from 0.1% in Q3 to 0.3% in Q4 and then to accelerate in 2025 as an uptick in government spending provides a tailwind, and consumer spending continues to improve. This should help to support demand in the hospitality and accommodation sector.”