Oil downturn fuelling fall in Aberdeen’s hotel occupancy

Similar cities thriving but businesses checking out, says survey

Aberdeen’s hotels suffered double-digit percentage falls in both occupancy and revenue in April as low oil prices continued to beset the industry, a new report says.

Hotel rooms in the Granite City generated £62.99 a night on average that month, down 12.1% yearon-year, while occupancy fell 11.5% to 68.9%, according to accountancy network

“Double-digit drops in both occupancy and revenue is specific to oil”

BDO’s survey of three and four- star establishments.

BDO said the fact that hotels in Edinburgh, Glasgow and Inverness thrived in April confirmed the energy industry downturn was to blame for Aberdeen’s plight.

Partner Alastair Rae added: “The continued uncertainty in the oil and gas sector is still having a serious impact on the hotel sector in Aberdeen.

“Double-digit drops in both occupancy and revenue at a time when the rest of the sector in Scotland experienced a doubledigit increase in revenue indicates that the fall is specific to the oil industry.”

Alison Christie, general manager at Thistle Aberdeen Airport Hotel, said her establishment was only now starting to see the shifts in occupancy levels that have afflicted other hotels from earlier in the year.

Ms Christie added: “We’re seeing fewer guests staying on a Sunday night when they used to stay overnight before flying out on a Monday morning. It’s safe to say that there are fewer non-discretionary business stays as people either undertake meetings virtually and by conference call, or travel to and from the city on the same day with no overnight requirements.”

Aberdeen City and Shire Hotels Association chairman Iain Watson is confident that the Granite City hotels can pull themselves out of the current malaise.

He said: “There have been several previous downturns in Aberdeen linked to oil prices and this will undoubtedly not be the last.

“But the city always proves to be resilient to these slumps and recovers. I am sure that the city will recover from this current economic downturn.”

BDO said Aberdeen’s troubles had dented overall Scottish figures for April, with uptake of rooms-rising just 1.1% to 75.4% and revenue going up 5.3% to £51.53.

For the UK as a whole, occupancy increased 1.4% to 74.6% and revenue rose 8.8% to £46.05 in April.

OCCUPANCY: Thistle Aberdeen Airport Hotel manager Alison Christie says her establishment is feeling the fall in guests