COP26 pushes up hotel room rates in Scotland in November

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COP26 has resulted in increased demand for Scottish hotels, leading to an increase in prices from the average daily rate of £ 23.

The tax and audit firm RSM UK analyzed the data produced by STR, which compares data from the hotel industry.

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

With the increase in occupancy and room rates, the revenue per available room in Scotland has risen to £ 87, after reaching £ 70 in October.

November’s revenue per available room also increased by £ 35 from pre-pandemic levels.

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

UK national averages still remain below pre-pandemic levels.

Stuart McCallum, Head of Hotels and Accommodation at RSM UK in Scotland, said: “The demand for accommodation in and around Glasgow during COP26 has given a welcome, but short-lived boost to the Scottish hotel industry.

However, Omicron has turned the industry around, as early bookings last month signaled an exceptional Christmas, but canceled holidays, festive breaks and Hogmanay celebrations will hit the Scottish hotel industry hard in December.

“Without a strong December, some hotels will not have a buffer to weather the slower months of January and February, which could lead to business difficulties in the New Year, especially since the moratorium on rents and VAT relief end in March 2022. “

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