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Fall in Aberdeen hotel occupancy rates slows

25 May 2016 by
Fall in Aberdeen hotel occupancy rates slows

Aberdeen's plunging hotel occupancy rates could be levelling off according to a recent survey by tourism market research specialist LJ Research.

The monthly LJ Forecaster Scottish Intercity Report, which tracks city centre hotel performance in Glasgow, Edinburgh and Aberdeen, shows that Scotland's oil capital recorded the least steep reduction in occupancy in over a year.

Having recorded their 12th consecutive month of double-digit falls in occupancy, Aberdeen hotels achieved an occupancy rate of 62.6% in April 2016, down by 2.5% compared with last year, the report revealed.

LJ Research said that despite the decrease and the occupancy figure being almost 19% below that of two years ago, the data suggests some signs of stabilisation in the market. It added that this finding is supported by forward bookings for May to July showing a 3% rise compared with the same period last year.

However the ongoing impact of the fall in global oil prices on Aberdeen hoteliers is mirrored in the continuing decrease in the average room rate (ARR), down by 26.8% in the period to £67.74, according to the report. As a result revpar decreased for the 17th consecutive month, falling by 28.7% to £42.37.

Glasgow's prospects look brighter, the report said, with the city achieving higher occupancy rates than Aberdeen and Edinburgh with 83.1% of its rooms sold in April 2016, up 1.6% from last year. ARR grew for the fifth consecutive month by 1.3% to £72.33, up 13.1% compared with April 2014, with revpar up 2.9%.

However Glasgow's forward booking rates tell a different story with a decrease of 3.5% over the next three months compared with the same period last year, according to the research.

Edinburgh's hotels showed accommodation demand falling by 5.7%, resulting in an average occupancy of 79.2%.

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