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Scotland ranks eighth for ROI on hotels in Europe

24 | 09 | 13

Scotland has ranked eighth out of 13 for European countries with return on investment (ROI) on leased hotels.

The news has strong significance for those in the catering and commercial kitchen equipment suppliers, as it highlights active trends in the hotel and hospitality sector. Whether it's the strength of each region or the range of hotels being favoured, the results could inform how businesses target their catering products.

According to Caterer and Hotelkeeper, the research from IPD and Scottish Development International (SDI) suggests a strong preference for the budget market.

Hotels in the country had total returns of 4.8 per cent year-on-year during 2012. By comparison, the rest of the UK had 5.1 per cent and Europe experienced 5.8 per cent throughout.

Across a three-year period, hotels in Scotland increased their returns by 7.8 per cent - this figure outperformed Austria, Germany, Finland, Portugal and Norway.

When it came to revenue per room, Aberdeen was the best location in Scotland. According to figures cited from HotStats, it achieved the second best performance in the UK after London with a year-on-year increase of 13.7 per cent last year.

Occupancy rates from STR Global were also used to highlight the differences in occupancy rates. Aberdeen, for instance, went from 72.7 per cent to 77.4 per cent. Edinburgh, on the other hand, went down to 77.3 per cent in 2012 from 80 per cent in 2011. Its revenue per room went from £63 to £60.50.

This dip in numbers may have been down to the Olympic Games, which were known to give London a boost in accommodation needs. It is thought the Commonwealth Games - coming to Scotland in 2014 - could provide a small boost for hotels.

International sector head of tourism at SDI Graeme White said: "The Scottish leased hotel market continues to generate competitive returns compared to other European countries and classes of real estate. When we consider the UK all real estate classes returns figures of 3.4 per cent year on year, Scotland continues to outperform this return."ADNFCR-16001031-ID-801641218-ADNFCR

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