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Average rates pass £90 in Edinburgh and Manchester

Scottish capital records room rate increase in March, despite a fall in hotel-based conference numbers
05/05/2016

Pictured: Edinburgh hotels suffered an 8 per cent drop in conferences in March

Edinburgh room rates withstood an 8 per cent decline in conference numbers to register growth of 7 points to £92, according to the latest Hotstats UK Chain Hotels market review.

Alongside a fall in conference numbers in the Scottish capital's hotels, food and beverage revenues also dipped, but both occupancy (77 per cent) and average rates registered growth - thanks in part to passenger numbers through Edinburgh Airport, rising 37.6 per cent in March to 493,200.

Meanwhile, report authors warn that the bubble may have burst for East Midlands hoteliers as profits dropped 7 per cent; the first retraction since January 2014. That was after falls in occupancy to 66 per cent (-3.4 per cent) and ARR (-0.6 per cent to £65). March was also the first time Revenue per Available Room (RevPAR) fell since January 2014, falling 5.6 per cent year on year to £42.90.


Report authors said: "Such a significant year-on-year drop in profit per room may suggest that this market has reached its peak after a very strong period of sustained growth."


Finally, Manchester hotels' decline in occupancy (-3 per cent) didn't bring down ARR, which rose 7 per cent to £90.


Hotstats authors added: "Hotel performance in Manchester has gone from strength to strength in recent years. Despite additions to stock in 2015 including the 208-bedroom INNSIDE by Melia and 330-bedroom Motel One Piccadilly, on a rolling 12-month basis, profit per room has increased by 9.3 per cent over the last year, to £43.51 in the 12 months to March 2016, from £39.82 in the 12 months to March 2015."


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