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Scottish hotel downturn continues

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Hotels across Scotland were hit by continued falls in occupancy and revenues in September, according to a report published today.

The study by accountancy firm PKF found room yields – the industry measure of revenues – slumped 7.8 per cent in Scotland during the month, much sharper than the 0.8 per cent decline seen across England and in stark contrast to a 3.1 per cent rise in Wales.

Glasgow suffered a 15 per cent slide in room yields, while Aberdeen was down 11.5 per cent and Edinburgh 4.7 per cent lower.

Scottish occupancy levels were down 1.6 per cent during September – that compared with a 1.8 per cent fall in England but a 0.7 per cent increase for Welsh hotels.

Alastair Rae, a partner in the real estate and hospitality sector at PKF, said: “This continued decline is of concern for the Scottish hospitality sector which has already had a difficult year.

“Occupancy held up on average across Scotland but Edinburgh experienced a fairly significant fall of 4.5 per cent. In Glasgow the 15 per cent fall in revenue to £55.41 is the lowest revenue figure since 2005 and is likely to be due to reduced corporate events, concerts, and conferences which the city relies on to fill its hotels.”


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