The slump in hotel-room occupancy and rates in Aberdeen is continuing as the sector is hit by low oil prices, new figures reveal.
The latest report by accountants and business advisers BDO LLP found rooms yield in the city, often highest in Scotland, has fallen from £68.66 in February 2015 to £41.62 a year later.
Rooms yield in Glasgow and Edinburgh for the month is higher at £42.30 and £44.32 respectively, both a slight increase on last February.
The firm’s monthly hotel survey found that year-on-year occupancy in Aberdeen fell 15.6% during February to 60.7% and revenue dropped 39.4%, leading to a warning many hoteliers will reach a “cut-off point”.
The new figures come a day after the North Sea oil balance sheet fell into the red for the first time since records began in 1968/69.
The Treasury put £24 million more into investment and decommissioning than it got back in petroleum revenue tax in 2015/16.
Elsewhere in Scotland, hotel revenue rose year-on year by 3.5% in Edinburgh, 5.6% in Glasgow and 0.5% in Inverness.
Occupancy also rose in the Scottish capital, with a 2.4% increase, while Glasgow recorded a 0.9% dip and Inverness was down by 2.5%. All three cities had rates of more than 70%.
Alastair Rae, head of BDO’s audit practice in Scotland, said: “Aberdeen’s hospitality sector continues to be adversely affected by the low oil price, which is clearly having a significant impact on occupancy and revenue levels.
“With occupancy dipping to 60.7% there will be a concern that revenues will continue to fall as demand remains as limited.
“There will be a cut-off point for many operators where they find the balance between occupancy and revenue is simply not working.
“However, for many others this will simply be a continuing challenge for them to manage.
“However, until a clear picture emerges of where the oil price is going to stabilise, the hospitality sector in Aberdeen is going to continue to be hit in the months to come.”
“While February is traditionally quite a flat month for the hotel sector it is good news that both Edinburgh and Glasgow posted good increases in revenue indicating a relatively strong performance in Scotland’s two largest cities.”
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