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UK hotel rates up 2.8 per cent in September, says HotStats

Hotels in Scotland saw some of the biggest price hikes, according to the latest report
25/10/2017

Pictured: Glasgow hotel rates were up more than 8 per cent in September

UK hotel rates increased by 2.8 per cent to £125.10 in September, according to the latest worldwide poll of full-service hotels from HotStats.

The month also saw a 0.1 percentage point decline in room occupancy, to 85.2 per cent. And it was hotels in Scotland that saw some of the biggest price hikes, with a 10 per cent increase in rates to £114 accompanied by a 2 per cent increase in occupancy.

Occupancy in Glasgow was up 2.8 per cent to 91.1 per cent, while an 8.1 per cent increase in average rates saw the price of a hotel room in the city hit £90.

Pablo Alonso, CEO of HotStats, said: “Edinburgh has undoubtedly been the star of the show in the Scottish hotel market in 2017. However, this month it was the turn of other cities to shine. In Glasgow, hotels have finally shaken off their post-Commonwealth Games hangover and are on course for a strong year of profit growth.

“With the Hydro now in full swing, attracting major music artists, and the SECC continuing to compete effectively for major conferences, as well as Glasgow’s strong profile as a destination for business and leisure visitors, the fundamentals of the hotel market suggests that the ground lost in 2015 and 2016 should be recovered.”

The oil crisis has led to low rates and good value for bookers in Aberdeen in recent months. However, the Aberdeen Exhibition and Conference Centre welcomed 35,000 delegates to the SPE Offshore Conference in September, which saw room rates leap 18.5 per cent to £80. But this increase in rates is not expected to last long, according to Alonso.

He said: “Whilst the pace of profit decline has slowed in 2017, the reprieve for Aberdeen hotels this month is likely to be short-lived. And with no obvious signs of a recovery in oil prices and a further 344 bedrooms due to enter the market in the next 12 months, including the 126-bedroom Marriott Residence Inn and the 218-bedroom Sandman Signature, the situation could remain difficult.

“For owners and operators of hotels in Aberdeen, up until now cost cutting measures to minimise losses have been vital to maintain profit levels. But unless the situation improves, further cuts will be untenable and astute hotel management will be essential for survival.”


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