Page last updated at 20:11 GMT, Tuesday, 14 July 2009 21:11 UK

Scottish city hotels faring well

Glasgow has proved to be an attractive option for conventions

Glasgow hotels are faring better through the recession than those in other British cities, with Edinburgh not far behind, new research has shown.

The two Scottish cities topped the table for occupancy and earnings from their hotels, according to analysis by Deloitte business consultancy.

Among those worst hit by the downturn were hotels at Heathrow and Gatwick airports in London.

They were affected by the fall in passenger traffic and flight crew.

The analysis measures the "revenue per available room", or RevPAR.

The UK figure registered a fall of more than 11% in the first half of this year, compared with last year.

But Glasgow saw only a 1.6% fall, and Edinburgh was 4.5% down.

Domestic demand

Glasgow hotels were found to have achieved 72% occupancy and the average room rate dropped by less than 1%.

Deloitte reported that Clydeside continues to attract both leisure and corporate business by hosting major concerts, while having some of the lowest room rates in the country.

They average £64 per night, which is proving attractive to the meeting, conventions and exhibitions market.

Central London, which has benefited from an influx of foreign shoppers, taking advantage of the weakening of sterling, saw RevPAR drop by more than 7%.

Newcastle was the only other English city to show a fall of less than 10% in the index.

Marvin Rust, hospitality managing partner at Deloitte, said hotel business "could be buoyed by strong domestic demand for tourism this summer as more Britons holiday throughout the UK".

He said British hotel business had held up "exceptionally well" in the global economic downturn, down by 11.1%, especially when compared to other countries across Europe, some of which were seeing RevPAR drop by 40%.

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