Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Insider UK
Insider UK
Business
John Glover

COP26 drives spike in Scottish hotel room rates during November

COP26 led to a surge in demand in Scottish hotels, which in turn increased prices of the average daily rate by £23.

Tax and audit firm RSM UK analysed data produced by STR, which benchmarks hospitality data.

It revealed the average daily rate increased by £23 from £98 in October to £121 in November. Higher demand also pushed Scotland occupancy to 72%, which was only slightly below the pre-pandemic comparable of 73% in November 2019.

With the rise in occupancy and room rates, revenue per available room in Scotland increased to £87, after coming in at £70 during October.

The November revenue per available room also increased by a £35 jump from pre-pandemic levels.

By comparison, the UK average daily rate rose from £98 in October to £100 in November. UK occupancy was 68% and the revenue per available room was £68.

UK national averages still remain lower than pre-pandemic levels.

Stuart McCallum, RSM UK’s head of hotels and accommodation in Scotland, said: "Demand for accommodation in Glasgow and the surrounding area during COP26 has given a much-welcome, but short-lived, boost to the Scottish hospitality sector.

"However, Omicron has placed the sector into reverse, as last month forward bookings were signalling a bumper Christmas, but cancelled parties, festive breaks and Hogmanay celebrations will all hit the Scottish hotel sector hard in December.

"Without a strong December, some hotels will have no buffer to ride out the slower months of January and February, which could lead to business distress in the New Year; particularly as the rent moratorium and VAT relief ends in March 2022."

Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.