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Other News

Hotel occupancy and takings in Aberdeen continue to fall

Aberdeen hotels suffered a further slump in trade in October as the wider impacts of the oil and gas industry downturn continued to hit hard, new research findings show. The latest monthly LJ Forecaster Scottish Intercity Report from tourism market specialist LJ Research says revenue per available room (revpar), a key benchmark for the sector, tumbled “unprecedentedly” below £50. Aberdeen’s revpar was £49.18, its lowest rate for several years and down by 37% on October 2014, according to LJ Research.

Other News

Hotels flag despite Offshore Europe

A busy Offshore Europe event delivered “staggering” occupancy levels for Aberdeen hotels, but failed to reverse an ongoing decline due to the oil price crash, new figures show. In what is the first report on the Granite city’s hotel trade for the key month of September 2015, LJ Research found that room occupancy fell 12.8% despite reaching 99% capacity halfway through oil week. The report also found that hotel room yields in the month were down 13.8% on September 2013 – the last time Aberdeen hosted the biennial oil and gas event.

Other News

Demand for hotels weakened by oil price

There is weakening demand for hotel rooms in Aberdeen as the fall in oil prices hits the industry, a report has found. Hotels in the city still have the highest average room rates (ARR) in the country at £92.87, but there has been a sharp fall in occupancy rates. The report from tourism market research specialists LJ Research found ARR in Aberdeen increased by 1.9% last month compared to 2013 but that room occupancy fell by 4.5%.


Opinion: Call hotels to account but don’t deny kids

Oil prices have crashed and the North Sea is hurting badly, with the likelihood that this is going to be a prolonged downturn . . . at least for the bulk of this new year, if not longer. Capital investment in the North Sea could halve by 2017 unless there is urgent reform of the tax regime in light of a big drop in the price of crude oil, according to Oil & Gas UK, which is hoping for good things from the Treasury before the May election following promises made early last month. And Wood Mackenzie has estimated that 32 potential European oil field developments worth more than $85billion (£55billion) are waiting for approval and could be at risk if oil prices continue to slump. A high proportion of those projects have a break-even price higher than $60 per barrel and many are in the UK sector.