RSM: Occupancy and profits soar for Scottish hotels as wider UK market falters

RSM: Occupancy and profits soar for Scottish hotels as wider UK market falters

Scotland’s hotel sector has outperformed the wider UK hotel industry in September, continuing the positive trend seen throughout 2024, according to the RSM Hotels Tracker.

The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy of Scottish hotels was up from 8.3% to 85.3% in September year-on-year, above the UK and London which reached 82.7% and 83.6% during the same period.

Average daily rates (ADR) of occupied rooms were up in Scotland, from £143.55 to £151.61 in September year-on-year, while the UK and London were both down in the same period. The UK fell from £155.25 to £153.21, while London saw a bigger drop from £227.24 to £218.11.

Gross operating profits (GOP) saw a slight uplift in Scotland, rising from 42.6% (September 2023) to 42.9% (September 2024). In comparison, GOP in the UK and London were both down 0.5% when compared to the same month last year.



Stuart McCallum, partner and head of consumer markets in Scotland at RSM UK, said: “Scotland’s hotel sector continued to perform well in September, with hoteliers poised for a continuation of this trend throughout the various holiday periods in October and December, despite lacklustre demand for the wider UK market.

“Scotland has remained buoyant throughout the year, a sign that the industry is gaining momentum and going from strength to strength.

“Although only slight, the increase to gross operating profits will help Scottish hoteliers to focus on building their margins and enhance the tourism experience, especially as the increases in international flights to Scotland will enhance connectivity and bring in further footfall.

“In addition, we’ll likely see the impact of the UK Autumn Budget over the next few months. While this brought some welcome news including the extension of business rates relief, businesses are hoping this support will be replicated North of the border in the Scottish Budget.”

He added: “As Scotland cements its position as a destination of choice for UK and overseas tourists, and off the back of a strong summer, the outlook for next year is positive.

“However, with hikes to employers’ National Insurance contributions, businesses will need to manage their recruitment strategies and budgets carefully, especially in the run up to a busy festive period.”

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