THE hotel sector in Scotland achieved a 10% year-on-year rise in revenue in April, as the buoyancy of the oil and gas industry ensured brisk trade in Aberdeen and conference business boosted occupancy in Glasgow.
This performance by the hotels sector in Scotland, revealed in a survey published yesterday by accountancy firm BDO, is much stronger than that recorded in England, excluding London, and Wales.
Rooms yield or revenue per available room in the hotel sector in Scotland in April was up 10% on a year earlier at £48.35.
It is calculated by multiplying occupancy by the average room rate achieved.
Occupancy in the Scottish hotel sector came in at 74.7% in April, up from 70.9% a year earlier.
The 10% year-on-year rise in rooms yield in Scotland in April was significantly ahead of a 5.2% increase in England, outside London. The hotel sector in Wales recorded a 0.1% year-on-year fall in rooms yield in April. The rooms yield figures for England and Wales came in at £40.47 and £35.51 respectively in April.
In Aberdeen, revenue per available room in April was up 21.9% on the same month of last year at £68.20. BDO declared this was the highest figure for rooms yield anywhere in the UK outside London.
Alastair Rae, a partner at BDO who covers the property, leisure and hospitality sector, said: "Aberdeen continues to soar ahead with revenue increasing to £68.20 during April. This figure is the highest of anywhere outside London.
"Aberdeen hosted the Hydraulic Fracturing conference and the Oil and Gas (UK) breakfast meeting in the month, but it is clear that the hospitality sector is an ongoing beneficiary of oil and gas activity."
Occupancy in the Aberdeen hotel sector stood at 78.3% in April, up from 76.3% in the same month of last year.
In Glasgow, rooms yield in April was up 10.6% on a year earlier at £45.06.
Occupancy in the Glasgow hotel sector jumped to 78.7% in April, from 73.1% a year earlier.
Mr Rae believed that the strong showing by the Glasgow hotel sector reflected buoyant conference activity.
He said: "The increase in revenue in Glasgow is extremely positive, with the city's outstanding conference activity paying dividends. It was recently reported that conferences have brought £1 billion worth of business to the city over the last decade and the 10.6% increase in revenue and (the) rise in occupancy during April are both signs of the success of conferences for the prosperity of Glasgow's hotel sector."
The hotel sector in Edinburgh also turned in a stronger showing this April than last. Rooms yield in the Edinburgh hotel sector in April was up by 3.4% on the same month of last year at £51.20.
The occupancy rate in Edinburgh in April was 75.1%, up from 73.8% a year earlier. In Inverness, revenue per available room in April was up 1% on the same month of last year at £39.66.
Mr Rae said: "Edinburgh saw occupancy stabilise and revenue up 3.4% to £51.20, which puts it at 10th-highest in the UK for revenue during April."
He was hopeful that Inverness would see more of an improvement in coming months.
Mr Rae said: "Inverness was fairly static, which may indicate that tourists aren't venturing north from the central belt, although the rest of the season should show improvement."
Commenting on the overall showing by the Scottish hotel sector in April, he added: "These figures show quite a happy upturn for the hospitality sector after a tough year.
"However, one swallow does not a summer make and it remains to be seen if this year provides the necessary prolonged improvement in performance for the sector."
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