Record profit growth for Edinburgh hotels

Published: 07 December 2016

A marked rise in the number of international visitors to Edinburgh in October led to record profit growth for the city's hotels of 9.8%.

Profit per room during the month was up 18.4%. As a result of top line increases in both room occupancy (+1.9 percentage points) and achieved average room rate (+10.1%), hotels in the Scottish capital recorded a 12.7% increase in revenue per available room for the month to £92.29, according to the latest HotStats UK chain hotels market review.

The strong demand for hotel accommodation is a direct reflection of the continued success of Edinburgh Airport, said the report. The airport handled 1.1 million passengers in October, a 12.5% year-on-year increase on the same period in 2015, of which the number of international passengers increased by 23.6%.

Meanwhile, the addition of approximately 820 bedrooms to the Newcastle hotel market has contributed to a 7.1% year-on-year decline in revenue per available room and a subsequent 8% drop in profit per room for the year-to-date.

Since the beginning of 2015, additions to the market have included a 160-bedroom Hampton by Hilton, 222-bedroom Motel One, 251-bedroom Crowne Plaza and 184-bedroom Premier Inn, which have contributed to falling room occupancy (- 3.8 percentage points) and achieved average room rate (-2.4%) performance for year-to-date...

Full story via TravelMole News

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