OIL SLOWDOWN HITS ABERDEEN HOTELS

Aberdeen’s hotel sector experienced double digit drops in both occupancy and revenue as the low oil price continued to take its toll according to the latest report by accountants and business advisers, BDO LLP.

The firm’s monthly hotel survey found that year-on-year occupancy in Aberdeen dropped 11.5% to 68.9% whilst rooms yield (the industry term for revenue) fell 12.1% to £62.99. This contrasted with double digit increases in revenue in Edinburgh, Glasgow and Inverness and positive rises in occupancy.

Edinburgh had the highest occupancy rise in April increasing 7.9% to 80.4% with an increase of 10.2% in revenue to £57.93. Inverness saw occupancy rise 7.5% to 78.3% with revenue up 20.7% to £49.83. Occupancy rose 0.9% in Glasgow to 80.6% and revenue rose 14.2% to £51.46.

The downturn in Aberdeen impacted on the total Scottish figures which rose just 1.1% in occupancy to 75.4% and had a 5.3% rise in revenue to £51.53. In regional UK there was an increase of 1.4% in occupancy to 74.6%; up 1.2% to 74.3% in England; and up 3.4% to 77.0% in Wales.

Revenue rose 8.8% to £46.05 in regional UK; was up 8.9% to £45.00 in England, and up 13.6% to £41.12 in Wales.

Alastair Rae, a partner in the Property, Leisure and Hospitality sector at BDO, said: “The continued uncertainty in the oil and gas sector is still having a serious impact on the hotel sector in Aberdeen. Double digit drops in both occupancy and revenue, at a time when the rest of the sector in Scotland experienced a double digit increase in revenue indicates that the fall is specific to the oil industry.”

Share on FacebookTweet about this on TwitterShare on Google+Share on LinkedInPin on PinterestEmail this to someone

Be the first to write a comment.

Letters to the Editor