Glasgow’s hotel sector closed out a record summer with a strong performance in August, a new survey has shown.
A raft of major events and conference business, including the city’s delivery of the largest multi-sport event ever in Scotland, the Commonwealth Games, helped drive average occupancy to 91.6% last month, according to the LJ Forecaster report.
Games boost
Across the 11 nights of the Commonwealth Games (July 23 to August 3), Glasgow’s hotels achieved average occupancy of 95.3% which was an 11.2% increase on the same period in 2013.
Strong occupancy was accompanied by a sharp increase in room revenue during the Games. The industry measure of room revenue performance (RevPAR) rose a hefty 155% to £121.23 compared to the same 11 nights in 2013.
Historic performance
The LJ Forecaster compiles the largest and most robust survey sample of hotels in Glasgow. The report analysed data collected from 25 hotels last month, representing nearly 4,000 rooms in the city centre.
Whilst slightly below the average level recorded last year, it is only the third time since monthly record-keeping began in 1999 that average hotel occupancy in August reached 90% or greater. By comparison, occupancy recorded in August 2001 averaged just 77%.
Notably, on 21 separate nights last month, occupancy was 91% or more and on five nights in August the city achieved occupancy levels of 99%.
Looking at the month as a whole, RevPAR rose by 19.4% to £72.27 compared to August 2013.
The report also shows that Glasgow’s financial year-to-date average, which monitors occupancy across the financial year (April through August) stands at 87.6% – a 7.2% increase on the same period last year.
Major events and conference business
Alongside the Commonwealth Games, key drivers of visitor volume during August included the Merchant City Festival, Piping Live! and the World Pipe Band Championships, the UDO World Street Dance Championships, Ant and Dec’s Saturday Night Takeaway Tour at the SSE Hydro and the International Bible Students Association (IBSA) conference at the SECC.
The Merchant City Festival drew record-breaking crowds of more than 215,000 to Glasgow’s cultural quarter while 8,000 delegates from around the world attended the IBSA convention. In particular, during Piping Live! and the World Pipe Band Championships, from August 11-16, hotel occupancy was never less than 97% and reached 99% on three nights.
Sean Morgan, Managing Director at LJ Research, said: “The upward trend seen in the Glasgow hotel market was again apparent in August and highlights a significant transformation taking place in Scotland’s largest city. Looking at our LJ Forecaster forward bookings there are no signs of any slowdown in demand or tapering of appetite to stay in the city. Among other things, the Ryder Cup, secured conference business and leisure events at the SSE Hydro will continue to generate new guests for Glasgow hotels.”
About LJ Research Ltd
LJ Research Ltd is a leading provider of key data and specialised insight to the tourism, travel and hospitality industry. Produced by LJ Research Ltd, the LJ Forecaster produces the most comprehensive set of destination occupancy reports available, providing hotel and destination tourism managers with an up-to-date picture of the total room occupancy and availability in their city based on past and future sales. For more information, visit www.ljresearch.co.uk.
About Glasgow City Marketing Bureau (GCMB)
Glasgow City Marketing Bureau (GCMB) is the official destination marketing organisation (DMO) for the city of Glasgow. As custodian of the PEOPLE MAKE GLASGOW brand, GCMB works with partners, stakeholders and businesses to position and promote Glasgow across national and international markets as one of Europe’s most vibrant, dynamic and diverse cities in which to live, work, study, invest and visit.
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