Traumas in the North Sea oil sector have hit the long term performance of Scotland’s hotels, according to an industry report out today.
Hotel performance has been dragged down by the drop in occupancy and revenue in Aberdeen.
The annual Hotel Britain report by accountants and business advisers, BDO LLP finds that Scotland’s hotels recorded a 0.4 per cent rise in their compound annual growth rate between 2011-2015 and a 3.8 per cent rise in revenue over the same period.
This contrasts with a 1.5 per cent rise in occupancy in regional UK – up 1.7 per cent in England and 1.6 per cent higher in Wales. Revenue rose 4.9 per cent in regional UK between 2011-2015 with England increasing by 5.1 per cent and Wales up 4.1 per cent.
Occupancy rose just 0.3 per cent in Edinburgh between 2011-2015; by 1.4 per cent in Glasgow, while Aberdeen was down by 2.3 per cent. And revenue in Aberdeen was up just 1.8 per cent.
Alastair Rae, Head of BDO’s Audit Practice in Scotland, said, “The fall in 2015 has been so marked that it has managed to bring down the average growth to just 1.8% and is likely to fall further in next year’s survey. It should also be noted that revenue over the last few years was very high in Aberdeen so it has a long way to go.”