Aberdeen’s hotel sector has experienced its third consecutive month of double-digit drops in occupancy and revenue, according to new figures from accountants and business advisers, BDO LLP.

The firm’s monthly hotel survey for June found that the continued uncertainty in the oil and gas sector further suppressed activity in the hospitality industry, with year-on-year occupancy dropping 13.4% to 68.5%.

Aberdeen room yield, or revenue, fell by 22.1% to £61.32 over the month, while strong increases were seen in Glasgow, Inverness and Edinburgh, of 21.0%, 15.6% and 8.9% respectively.

Overall Scotland had a hotel revenue figure of £68.39, which was the greatest of any part of the UK. However, its percentage growth of 6.2% was lower than England’s 10.4% and Wales’ 17.6%, with BDO suggesting the countrywide drag on numbers is due to the effect of the downturn in Aberdeen.

Alastair Rae, a partner in the Property, Leisure and Hospitality sector at BDO, said: “There is little doubt that Aberdeen’s hoteliers are facing a difficult time. While the drop in occupancy and revenue comes from a high base point last year, there are clear signs that the oil and gas sector is dramatically reducing its costs in the city with hospitality among the first expenses to be cut.

“I believe that this situation will not improve in the immediate future so would caution the hotel sector in Aberdeen to ensure it is managing its costs to cope with the reduced demand and income.”

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