Scotland’s hospitality sector is basking in the glow of a successful summer season, marked by an upswing in room rates, occupancy rates, and gross operating profits. This impressive feat is a testament to the resilience and adaptability of the industry, particularly in the face of challenging global circumstances.
According to the latest data from RSM UK’s hotels tracker, Scotland’s hotels outperformed their UK counterparts during the summer months. In July, Scotland recorded an average occupancy rate of 82.9%, which surged to an impressive 86.7% in August. In contrast, the UK experienced a dip from 83% to 79.6% during the same period. Equally noteworthy was the uptick in average daily rates of occupied rooms in Scotland, climbing from £150.85 in July to £170.53 in August, while the UK saw rates decline from £165.57 to £145.44.
One of the key metrics that underscored Scotland’s stellar performance was the substantial increase in Revenue per Available Room (RevPAR). In July, Scotland’s RevPAR stood at £125.13, and by August, it had risen significantly to £147.81. In contrast, the UK saw its RevPAR drop from £137.44 to £115.83 over the same period. This remarkable growth in RevPAR for Scotland underscores the sector’s robust health and its ability to capitalize on opportunities.
The surge in performance can be attributed, in large part, to the influx of international tourists who flocked to major cities in Scotland for events such as the Edinburgh Festival and the UCI championships in Glasgow. The events drew visitors from across the globe to Scotland’s vibrant cultural and sporting scenes.
However, it’s worth noting that despite these encouraging statistics, a recent report has raised a pertinent concern. Demand in Scotland’s capital, Edinburgh, is beginning to outstrip supply, even as the city boasts the highest hotel construction pipeline in Europe. This signals a need for careful planning and strategic management to ensure that the sector continues to thrive without compromising on quality or customer experience.
Marcus Jones, Managing Director of Capcon and Head of Capcon Reality, says: “At Capcon, we understand the unique challenges and opportunities facing the hospitality industry in Scotland. We’re dedicated to helping our clients navigate compliance and risk management, enabling them to focus on what they do best – delivering exceptional guest experiences. Our tailored profit growth strategies have been instrumental in driving positive results for our partners in the sector.”
Scotland’s hospitality sector charts a promising course towards recovery and growth. With a commitment to excellence and a keen eye on industry trends, Capcon remains an invaluable partner to the Scottish hospitality industry, ensuring that it not only survives but thrives in a dynamic and evolving landscape.
As Scotland’s hospitality sector moves towards recovery and growth, Capcon remains a dedicated partner. With a focus on excellence and a deep understanding of the industry, Capcon continues to provide essential support and expertise to help businesses navigate an evolving landscape and thrive.
Source: Scottish Finance, 6 October 2023