Glasgow’s hotel sector continued its strong start to 2014 with record-breaking results during February, the ninth consecutive month of record-breaking occupancy rates for Glasgow’s hotels.
The LJ Forecaster report, from tourism market research specialists LJ Research, shows that occupancy in the city averaged 78.3% last month – the highest occupancy level for February the city has seen since monthly-record keeping began in 1999, and a rise of 5.3% in absolute terms compared with February 2013.
It also demonstrates the scale of industry growth in the city in the last decade, with average occupancy recorded in February 2004 reaching just 63%. And it is only the fourth time in the past 15 years that average occupancy in February has risen above 70%.
Specifically, on five separate nights last month, occupancy reached 93% or more; it peaked at 99% on February 1, which coincided with the opening of the Glasgow Film Festival and the arrival of the Strictly Come Dancing UK tour at the SSE Hydro.
Average occupancy and room rates up
The report also shows that Glasgow’s year-to-date average, which reflects occupancy across the financial year (April through February), is operating at 80.6% – a 3.5% rise on the same period last year.
There was more good news for the city’s hoteliers as February’s high occupancy rates mirrored an increase in average room rates (ARR) for the month, which rose 6.8% on February 2013 to £63.36.
The LJ Forecaster compiles the largest and most robust survey sample of hotels in Glasgow. The report analysed data collected from 24 hotels, representing more than 3,600 rooms in the city centre
Solid, sustained growth
Sean Morgan, Managing Director at LJ Research, said: “Another record month for Glasgow’s hotels suggests solid, sustained growth is underway in the city’s tourism industry. In addition to growing volumes, hotels also benefited from higher room revenues with average room rates in the city centre increasing 6.8% compared to February last year.
“The LJ Forecaster also tracks hotels’ future bookings and, based on our analysis of this data, increasing hotel volumes looks set to continue as accommodation demand for the next three months is currently 9% higher than the same period last year. More people staying at city centre hotels should translate to additional retail and tourism business footfall, so we can expect a wider economic benefit associated with this positive hotel performance trend.”
Events throughout February
February’s visitor influx can largely be attributed to a number of key events that took place throughout the month. This included a marketing campaign run by Glasgow City Marketing Bureau (GCMB) across Scotland, the north of England and Northern Ireland geared at attracting short-break visitors; the X-Factor 2014 Tour at the SSE Hydro, and Rangers and Celtic’s home fixtures against Brechin and St Johnstone.
In particular, the weekend of Friday and Saturday, February 21 and 22 coincided with Beyoncé’s gig at the SSE Hydro and the All-Scotland Irish Dancing Championships at Glasgow’s Royal Concert Hall – and achieved occupancy of 93% and 94% respectively.
Investment + growing reputation
Philip Mellor, General Manager of Menzies Hotel and Co-Chair of the Greater Glasgow Hotels Association (GGHA), said: “Our hotel sector has enjoyed nine consecutive months of growth, with some of the highest occupancy rates since records began.
“We’re seeing the significant investment that has taken place in Glasgow over the past 10-15 years, coupled with the city’s growing reputation as a host city for major events and international conferences, reflected in the strength of our hotel industry, and the wider tourism sector, today.
“This is welcome news for Glasgow’s hoteliers, during the biggest year in the city’s history, and will give continued confidence to those breaking ground on new developments or with developments in the pipeline.”
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.
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