- Hotel Market Research
- No comments
City centre hoteliers in Aberdeen, Edinburgh and Glasgow achieve increased room rates with the highest growth driven by Scotland’s capital.
Aberdeen, Edinburgh and Glasgow city centre hoteliers recorded an increase in Average Room Rate (ARR) in December. Growth was achieved across all hotel standards – budget, midrange and luxury – and by both independent and chain hotels during the month, according to the LJ Forecaster report from tourism market research specialists LJ Research.
Despite the recent collapse in oil prices affecting the oil and gas industry, the highest ARR across the three cities was recorded in Aberdeen at £92.87 (up 1.9% on December 2013). In Edinburgh, the average price for a room also exceeded the £90 threshold at £90.95 (up 4.2% on December 2013) with the capital benefitting significantly in the run-up to Hogmanay. Whilst achieving the lowest average room rate during the month, revenue growth was highest in Glasgow as rates increased by 6.3% compared to December 2013.
Contrasting results in terms of room occupancy were apparent across the cities as occupancy fell slightly in Glasgow (by 1.6% compared to December 2013) and fell more starkly in Aberdeen (by 4.5%) whilst strong growth (of 6.4%) was achieved in Edinburgh.
Despite the slight fall in occupancy, the overall performance in Glasgow was again positive as Revenue Per Available Room (RevPAR) – the industry’s main performance measure – increased by 4.7% to £45.12 compared to December 2013. This was the highest December RevPAR figure on record and marked the 13th consecutive month of RevPAR growth in the city.
Scott Taylor, Chief Executive of Glasgow City Marketing Bureau, said: “From the best-ever Commonwealth Games and Radio 1’s Big Weekend to the MTV EMA and the BBC Sports Personality of the Year Awards, 2014 was the year of Glasgow. The city was on the world-stage like never before, which helped to drive record breaking revenues for our hoteliers and continued tourism growth.
“Our focus now is to ensure that Glasgow remains front of mind beyond 2014 and that the unforgettable experience of last year will encourage visitors to want to return time and again. We’re already looking forward to a bumper 2015, which will see the city host the Turner Prize; the MOBO Awards; the World Gymnastics Championships; Davis Cup Tennis featuring Andy Murray and the 7,000-delegate All Energy Conference, which is the largest renewables event in the UK.
“Moreover, with new developments from Accor, Travelodge, Motel One, Hampton Inn by Hilton and Village Urban Resorts all coming to fruition soon, Glasgow will add more than 800 additional hotel rooms to its accommodation stock. Major hotel brands and investors know that Glasgow is a safe bet.”
In Edinburgh, following the growth in rates and, in particular, occupancy, RevPAR grew at a buoyant rate of 10.8% to £71.60 which, similar to Glasgow, outperformed previous December RevPAR figures.
Tristan Nesbitt, Chairman of the Edinburgh Hotels Association and General Manager of the Sheraton Grand Hotel & Spa, said: “These statistics are very encouraging and show that Edinburgh benefited from last year’s high-profile events including the Commonwealth Games and the Ryder Cup. There has been a great deal of effort made to build on Edinburgh’s reputation as a world-class destination which has been helped with major investment in many of our hotels combined with an exciting influx of new openings. It is essential that we continue to offer an exceptional visitor experience with a diverse and high-quality choice of accommodation and build on the momentum of this exciting time for Scottish tourism.”
Meanwhile brought about by the steep drop in occupancy, RevPAR in Aberdeen fell by 2.7% to £57.60.
Sean Morgan, Managing Director of LJ Research said: “2014 has been a very successful year for Scotland’s hotels and the tourism industry in general. The Commonwealth Games, the Ryder Cup and the independence referendum, in particular, have positioned the country on a global stage and have driven demand for accommodation and it is pleasing to see strong momentum for 2015 in our LJ Forecaster December results.”
“Whilst we saw room rate growth in the three cities in December, Edinburgh took the performance lead with very high demand throughout the month as hoteliers concluded the year with a record performance.”
“Our forecast figures show a continuation of weakening demand in Aberdeen. As ministers order an urgent review into the state of the North Sea oil industry it will be interesting to see how this market performs in the coming months. Meanwhile, in Glasgow, there is evidence of significant additional accommodation bookings for the quarter ahead as the city continues to reap the benefit of an increased profile following the Commonwealth Games and the acclaimed SSE Hydro arena.”
Note to Editors:
About LJ Research Ltd
LJ Research Ltd is a leading provider of key data and specialised insight to the tourism, travel and hospitality industry. Produced by LJ Research Ltd, the LJ Forecaster produces the most comprehensive set of destination occupancy reports available, providing hotel and destination tourism managers with an up-to-date picture of the total room occupancy and availability in their city based on past and future sales. For more information, visit www.ljresearch.co.uk.