Edinburgh Hotels Top the Profit Growth Table in 2016
Hotels in Edinburgh recorded a 12.0 % increase in profit per room in 2016 , as hotel managers in the Scottish capital were able to combine an increase in revenues with a reduction in costs .
Profit growth for Edinburgh hotels is once again at the top of the table of key cities in the UK following a mixed profit performance in 2014 (+ 4.4 %) and 2015 ( -0.4 %).
The growth in revenue in the Scottish capital was led by strong room occupancy levels , which remained amongst the highest in the UK in 2016 , increasing by 1.4 percentage points to 82.9 % enabling hoteliers to leverage achieved average room rate by 8.4 %, to a record high of £ 114.15 .
The growth in the achieved rate in the leisure (+ 13.2 %) as well as corporate (+ 4.6 %) segments suggests Edinburgh remains a key economic and visitor hub . Furthermore , the ongoing success of the Edinburgh Fringe Festival fuelled an 11.6 % increase in RevPAR in August to £ 163.25 .
In addition to the growth in revenue in 2016 , hotels in Edinburgh recorded a 0.4 percentage point decline in payroll to 27.4 % of total revenue , helping to drive a profit conversion of 38.3 % of total revenue .
Birmingham hotels enjoy best year as tourism booms
Birmingham ’ s hotel sector has seen its most successful year in history , with occupancy rates for 2016 peaking at 99 % capacity and averaging at 75 % - both the highest on record .
The figures released last month reveal that both the proportion of international and overnight visitors to the city have doubled in the last three years .
Overnight guests now account for 45 % of all visitors , compared to 21 % in 2013 . Whilst the proportion of international visitors has grown from 6 % to 12 %, respectively , with the most visitors travelling from European countries such as France and the Netherlands , as well as from the US .
Balmoral Hotel , Edinburgh
Additionally , the proportion of leisure visitors to the city has also increased - from 45 % in 2013 to 76 % in 2016 ; demonstrating a significant shift in the type of visitors the city is drawing .
“ It ’ s fant see Birm now th as a to destin
Emma Eastwood , revenue manager at Hotel Indigo Birmingham , said : “ It ’ s fantastic to see Birmingham now thriving as a tourist destination , and we ’ re delighted to be at the heart of that as a city centre hotel . We ’ ve just finished our most successful year on record , and with a continuing increase in both overnight and international visits to the city , we ’ re already excited for what 2017 will bring .”