THE hotel sector in Scotland achieved a solid year-on-year rise in revenue in March, which contrasted with declines in the English market excluding London and in Wales, a survey has revealed.
The survey, published yesterday by accountancy firm BDO, showed that rooms yield or revenue per available room in the hotel sector in Scotland in March was up 5.9% on a year earlier at £45.89. Rooms yield is calculated by multiplying occupancy by the average room rate achieved.
Occupancy in the Scottish hotel sector came in at 69.6% in March, up from 68.5% a year earlier.
The 5.9% year-on-year rise in rooms yield in Scotland in March contrasted with a 0.5% fall in England, outside London, and a 6.8% drop in Wales. The rooms yield figures for England and Wales came in at £39.35 and £38.01 respectively in March.
Hotels in Aberdeen and Edinburgh turned in a strong performance in March, but the sector was weaker in Glasgow and Inverness.
The hotel sector in Edinburgh had performed poorly in February, compared with a year earlier. Glasgow hotels had shown solid year-on-year advances in February.
In March, the rooms yield for the Aberdeen hotel sector was up 13.3% on a year earlier at £65.88. The sector in Edinburgh enjoyed a 13.7% year-on-year increase to £50.94.
However, there was a 6.1% year-on-year fall in rooms yield in Glasgow in March to £42.76. And the hotel sector in Inverness experienced a 0.8% year-on-year decline in revenue per available room to £24.76 in March.
All four of these Scottish cities achieved a year-on-year rise in occupancy in March. Occupancy in Aberdeen came in at 75.7% in March, up from 75.5% a year earlier, with Edinburgh at 69.8%, up from 69% in March last year, Glasgow at 75.6%, compared with 73.9%, and Inverness at 70.7%, up from 69.2%.
Alastair Rae, a BDO partner specialising in the property, leisure and hospitality sectors, cited the boost to hotels in Aberdeen from the oil and gas industry.
He said: "Aberdeen remains buoyant due to the continued high oil price, which supports the wider economy, and benefited further from specific events during March."
Mr Rae cited the staging in Aberdeen of an expo for overseas job opportunities and the Young Coastal Scientist and Engineers Conference.
He noted the rise in revenue in Edinburgh had been achieved against a relatively weak March 2012 figure, but observed the Scottish capital had also benefited from Easter falling earlier this year and a "consequent surge in tourism".
Mr Rae said: "The rise in occupancy in both Glasgow and Inverness, coupled with a fall in revenue, would indicate competitive pricing to maintain numbers. This is a common but short-term measure in the sector."
He added: "The improvement in Edinburgh is welcome, given the relatively weak occupancy and revenue figures which the capital has experienced in recent months. It is clear the sector remains stretched, and that we are some way from experiencing a prolonged period of growth, but this improvement is very welcome.
"Whether these figures are simply a blip or mark a return to increased revenue and occupancy remains to be seen."
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