This success is largely attributed to the Edinburgh Fringe Festival, which drew in 2.6 million attendees.

The latest Hotels Tracker, which is compiled and produced by Hotstats and analysed by RSM UK, shows that in Scotland hotel occupancy rates rose from 86.8% in August 2023 to 87.9% in August 2024, a continued upward trend from pre-pandemic levels of 85.7% (August 2019). Scotland also overtook the wider UK hotel sector’s occupancy levels in August 2024 (81.3%).

Average daily rates (ADR) of occupied rooms have risen from August 2023 (£170.68) to August 2024 (£180.97), with the UK making a smaller jump to £153.74 from £147.91. Scotland’s gross operating profits additionally increased to 48.2% in August from 47.5% the previous year, whilst the UK saw a 1.7% uplift to 36.8% (August 2024).

Stuart McCallum

Stuart McCallum, partner and head of consumer markets in Scotland at RSM UK, said: “It is encouraging to see Scotland’s hotel sector remained buoyant throughout August, with occupancy rates, average daily rates and gross operating profits outperforming the wider UK market, ending the summer on a high.

“These latest figures have been driven by the Edinburgh Fringe Festival bringing in heavy footfall, with 2.6m people attending this year’s event, one of the highest turnouts since 2019. The rise in gross operating profits will also help Scottish hoteliers build back their margins.

“Throughout 2024, Scotland has enjoyed welcoming tourists for various international music, cultural and sporting events, including The Eras Tour and The Open, providing a significant uplift to Scotland’s leisure, hospitality and hotel industry.”

He added: “With the recent announcement that the 2026 Commonwealth Games will be hosted in Glasgow, another major sporting event which will attract international visitors, now is the time for long-term planning and infrastructure.

“This will ensure the city can manage the added footfall and strengthen Scotland’s hotel sector. Glasgow may look to Edinburgh’s transport system to improve connectivity and partnerships with local services, to ensure a better tourism experience.”