THE Glasgow hotel sector enjoyed a solid performance in February, buoyed by the city's conference and concert facilities, a survey has revealed.
However, the Edinburgh hotel sector put in a weak showing, according to the survey by accountancy firm BDO.
Although hotel occupancy in Aberdeen was lower this February than in the same month last year, room rates in the Granite City remained buoyant as the oil industry continued to prosper.
Revenue per available room, calculated by multiplying occupancy by the average room rate achieved, was significantly higher in Aberdeen than anywhere else in the UK outside London.
Hotel occupancy in Glasgow came in at 73.7% in February. This was up from 70.9% in the same month of last year.
Revenue per available room came in at £41.32 in the Glasgow hotel sector in February. This was up 4.9% from £39.40 a year earlier.
Alastair Rae, a partner in the property, leisure and hospitality sector at BDO, said: "Glasgow has done very well to achieve both occupancy and revenue increases during February, which is traditionally a quiet month.
"This was achieved through the city's well-organised and marketed conference and concert facilities which will be boosted further when the new Hydro venue opens next to the Scottish Exhibition and Conference Centre."
SECC chief executive John Sharkey last autumn highlighted "better-than-anticipated business plan projections" for The Hydro, when he unveiled an underlying trading profit of about £350,000 for the SECC in its financial year to March 31 2012. He cited a healthy calendar of dates for concerts and events at the venue, which is due to open this year.
BDO, while impressed by the showing of Glasgow hotels, considered the "underperformance" of the hotel sector in Edinburgh to be of concern. It cited weather and disruption to the roads network as possible factors in the weakness of the Edinburgh hotel sector in February.
However, it also highlighted a possible underlying change in this marketplace, with more budget hotels opening, and the possibility that this might drive down room rates more generally in the Scottish capital.
Hotel occupancy in Edinburgh came in at 65.8% in February, down from 66.2% in the same month of 2012. And revenue per available room in Edinburgh was £43.01 in February, down 6.3% from £45.92 a year earlier.
Mr Rae said: "Of concern is the continuing underperformance of the Edinburgh sector. Given the capital's dependence upon the leisure sector, this may be due to a number of factors, including the weather and the never-ending disruption to the roads network.
"However, there may be an underlying change with the increasing presence of the budget hotels which may be driving overall revenue downward while maintaining static occupancy.
"With several new hotels opening in the city charging between £25 to £35 per night, there is a concern that pricing expectations among tourists may be lowered, resulting in reduced rooms yield among the non-budget offering.
"This could cause financial issues for many operators over the coming year if it continues."
Aberdeen hotel occupancy fell to 76.7% in February, from 78.7% a year earlier. However, revenue per available room came in at £64.69 in February, up 8.3% from £59.75 a year earlier. Inverness occupancy came in at 70% in February.
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