Scottish hoteliers bank on Oasis and Spider-Man boost after early summer disappointment
“Although we’ve seen a fall in room rates, demand for these big-ticket events should drive increased footfall” – Katie Morrison, RSM UK
Demand for hotels in Scotland increased at the start of the summer but this was not enough to offset rising staff costs as profits cooled, new figures have revealed.
Occupancy at hotels north of the Border ticked up from an average of 83.7 per cent to 83.8 per cent in June, measured year on year, edging slightly above UK-wide occupancy rates, according to the latest RSM Hotels Tracker.
However, gross operating profits still eased, from 46.7 per cent in June 2024 to 44.9 per cent in June 2025 in Scotland, and from 44.7 per cent to 42.1 per cent in the UK. Average daily rates (ADR) of occupied rooms in Scotland were down from £180.49 to £169.95 in June, year-on-year, and decreased from £174.56 to £166.67 in the UK.
Katie Morrison, partner and head of consumer markets in Scotland at RSM UK, said there had been an “encouraging” rise in demand and strong occupancy levels in June.
“But as cost pressures continue to bite, it’s now even more important that hoteliers sustain this demand, especially during the busier summer months with August seeing the Oasis reunion tour and Edinburgh festivals,” she added.
“Although we’ve seen a fall in room rates, demand for these big-ticket events in Edinburgh should drive increased footfall and bring a welcome boost to leisure and hospitality businesses, as well as the wider economy.
“Similarly, Marvel has recently extended its filming schedule in Glasgow [for Spider-Man], which has attracted thousands of fans to the city and will bring global visibility to Scotland, supported by the expansion of flight routes to Edinburgh and Glasgow airports in 2025.”
The latest tracker showed that total hotel payroll (per available room) had grown in Scotland from £45.98 to £47.77 year-on-year in June, while the UK figure rose from £48.07 to £50.34.
Morrison added: “Scottish hoteliers are not only having to compensate for a rise in employee costs, but they are also having to increase staff numbers to meet higher demand in the summer months - a double whammy for the sector. While we expect strong demand to continue into July, as consumers prioritise taking trips away, there are clear pain points in the sector.”
Comments
Want to join the conversation? Please or to comment on this article.