RSM: Surge in Scottish hotel occupancy rates outpaces UK
Scottish hotels experienced a larger-than-normal surge in room rates in May, bolstered by three bank holidays that increased demand, as per the RSM Hotels Tracker.
The data, gathered by Hotstats and interpreted by RSM UK, showed hotel occupancy in Scotland rising from 73.2% in April to 77.8% in May, surpassing the UK-wide increase from 73% to 74.7%.
Average daily rates (ADR) for booked rooms in Scotland also escalated from £114.32 in April to £136.08 in May, whereas UK rates overall grew from £138.38 to £150.12.
Revenue per available room (RevPAR) observed a significant climb from £83.71 to £105.94 in Scotland, slightly less than the increase from £100.96 to £112.08 in the UK. The gross operating profits (GOP) of Scottish hotels marked a 10% rise to 36.3% in May, up from April’s 26.4%.
“The impact of the hat-trick of bank holidays in Scotland in May has undoubtedly helped performance in the hotel sector”, remarked Stuart McCallum, RSM UK’s regional lead for consumer markets in Scotland.
He highlighted Scotland’s hotel occupancy rates exceeding the UK’s, reflecting a bustling month for hotels owing to the extensive variety of offerings. He also underscored the growth of RevPAR to £105.94 in Scotland, as compared to £112.08 in the UK.
Mr McCallum continued: “May would be the traditional start for the summer holiday season in Scotland and this trend through April into May really does bode well for a great season for Scottish hoteliers. This will be bolstered by more international tourists visiting the major cities for a number of world-renowned events.
“With the Edinburgh Fringe Festival in August and the UCI Championships at the same time in Glasgow, demand for hotels is going to rise rapidly, with limited discounts available given the strong demand.
“RSM’s latest consumer survey shows people still want to book breaks away and are doing so, while households rein in their spending in other areas such as eating out. Weather is also an important factor in hotel demand, and given the warmer climate we’ve had recently, I expect the positive sector trends to continue into June up to September (but I can’t guarantee the weather will be that good throughout the entire summer).”