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Hotels in Aberdeen booming despite UK gloom

ABERDEEN is the only part of Scotland defying a UK-wide slump hitting the hotel sector, according to accountant PKF.

In July, the oil capital saw occupancy rates rise by 11.1% to 81.1% and revenue by 21.3% to £ 60.68.

Yet across Scotland as a whole occupancy rates were down 2.8% at 80% compared to 4.5% down at 76.5% for the UK as a whole.

Room yield, the industry measure of revenue, was down 2.1% in Scotland and down 0.2% for the UK.

Alastair Rae, a partner in the real estate and hospitality sector at PKF, said: "These figures continue a difficult year for the hospitality sector.

"Aberdeen seems immune from the economic downturn with its hospitality sector bolstered, and even thriving, due to the buoyant oil and gas sector.

"However, I think most people realise this is due to geopolitical issues and the response of the OPEC countries in sustaining a higher than expected oil price so may be subject to severe fluctuation in the future if oil supplies stabilise."

Only Blackpool and Belfast reported higher revenue growth than Aberdeen. Edinburgh continued to have a troubled year with occupancy rates down 8% and revenue off 10.1%.

However, occupancy rates still stand at 81.5%, the 12th highest figure in the UK. Meanwhile, revenue in the capital, at £66.35 a room, is the fifth highest in the UK.

In Glasgow, both occupancy and revenue rates were down 1.2%. Inverness saw occupancy fall 2.9% and revenue down 6.7%.

Mr Rae added: "The weather, coupled with economic and employment uncertainty, has hit both hospitality and retail hard. Unfortunately this looks likely to continue.

"There may be some consolidation and some difficult decisions to be made if expected revenues fail to materialise by the end of the summer."

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