Aberdeen hotels recorded the strongest growth in revenue per available room (revpar) across all UK hotels during 2013, according to new figures published today.
The Q4 Hotel Bulletin, produced by AM:PM Hotels, HVS and Zolfo Cooper, showed that Aberdeen achieved an average revpar increase of 19% last year, outstripping all over UK cities, while the performance of hotels in Newcastle, London and Birmingham were the least favourable of the 12 cities reviewed.
While oil and gas related demand drove Aberdeen's impressive rates, limited hotel supply also boosted figures. Existing hotel supply is expected to grow by 10%, but this is unlike to temper the performance of the city.
Edinburgh also recorded a strong performance, recording an average increase of 9% during 2013. The Scottish capital was better able to absorb the impact of the 11% growth in hotel bedrooms, although its performance was compared to a weak 2012, when tourists avoided the city during the London Olympics. This year, Edinburgh is expected to indirectly benefit from the 2014 Commonwealth Games in Glasgow and an increase in corporate demand.
Leeds is described by the Hotel Bulletin as "one of the surprise performers in 2013" with revpar increasing by an average of 9% due to a growth of conference business and a relatively low level of new openings. Existing hoteliers will be encouraged by the low pipeline of new hotels, amounting to 3% of existing supply.
The low revpar growth figures for Newcastle, London and Birmingham were mirrored by also being the cities which recorded three of the top four increase in new rooms supply.
Newcastle was the only city to record a revpar decline with a decrease of 5%, following on from a revpar fall of 4% during 2012. The city has had a particularly active growth in hotel openings, with an oversupply of the four star and apartment sector, both which rely on the corporate market. With active pipeline level above 11%, Newcastle hoteliers may continue to struggle in 2014.
London revpar figures increased by an average of 1% which, when compared to the other UK cities, appears low. However, the report said this is "an impressive result given supply growth and the Olympic boost experienced in 2012".