Occupancy levels and rates at hotels in Edinburgh have come under pressure as part of a wider squeeze taking place outside London, a property investment firm said today,
The RDI real estate investment trust invests in the sector through its backing of Glasgow and London-based RBH Hospitality Management which runs sites including Courtyard by Marriott and Hilton Doubletree.
In a trading update today RDI said the London market for ‘limited service’ budget hotels has traded in line with expectations.
“However, certain regional markets, including Edinburgh, have seen occupancy and rates come under pressure. A similar trend has been experienced across the group's managed hotel portfolio with London hotels typically experiencing stable trading conditions and a limited number of regional hotels experiencing tougher market conditions.”
Overall, RDI said it was making good progress across its portfolio with positive letting activity and said its disposal programme was continuing to plan.
Mike Watters, CEO at RDI, said: "Our asset management team has delivered a number of letting successes, reflecting our ongoing focus on maximising the potential of our core portfolio. “Within our non-core portfolio, we are making good progress in disposing of those assets identified for sale in order to reduce leverage and reweight our portfolio. This will ensure it is more streamlined, structurally resilient and well positioned for the long term.”
