With the school summer holidays in full swing and Scottish holidaymakers looking for somewhere to escape for some quality time, investment and interest in Scotland’s hotel sector is seemingly checking in for success after some fantastic half year results.
Far from the restless nights experienced a number of years ago as a result of the Covid-19 pandemic, there seems to be an energetic boost in both the number of tourists staying in Scotland’s hotels and investment in hotel ownership across the nation.
For example, the trio of Bank Holidays we saw across May and June saw a fantastic boost for hotel businesses with figures from Hotstats showing a 10% jump in gross operating profits.
Owners and investors are also checking in. According to a report last week by real estate company Savills, the Scottish hotel market has seen investment volumes increase by three times that seen at this point last year, totalling £165m compared to just £54m in 2022.
This colossal burst in growth in just 12 months is largely due to the sale of Edinburgh’s Waldorf Astoria Edinburgh, the Caledonian, which made up for more than half of the total figure. At the other end of the scale, the charm and character offered by Scotland’s more unique hotels in the independent and boutique sector has generated transactions of up to £71 million.
This includes the £45m sale of a portfolio of seven four and five-star hotels located across the Scottish Highlands previously owned by the Crerar Hotels chain.
Savills also made a specific mention in their findings that this rise is fantastic news for the resilience of the Scottish market when compared to the 60 per cent year-on-year decline the UK-wide hotel sector has seen. Along with an increase in deal volumes, operational performance of the sector is also doing extremely well in Scotland.
The cost-of-living crisis means people are going away less, so when they travel, they’re looking for something extra special. This is likely one of the key drivers behind such investments into some of Scotland’s cosier, quirkier, and posher venues.
One of the recent hotel properties appearing on the market includes the Goblin Ha’ Hotel in East Lothian, which is being pitched as a property ‘brimming with character’, especially being named after the supposedly haunted nearby ruins of Yester Castle.
It’s not just new owners who have spent the summer investing in Scotland’s hotel sector. Some of the industry’s heaviest hitters have also been looking to strike while the iron is hot in this hotel interest boom. Virgin Group’s head honcho Sir Richard Branson himself recently revealed that his company’s focal Edinburgh site is hiring Mafalda Moura Albuquerque as general manager of Virgin Hotels in the Capital.
The new hire will lead all operational departments of the hotel, bringing over 10 years of experience to the city centre site to further boost the hotel’s already impressive track record.
However, the industry isn’t completely in the clear just yet. With pressures from rising interest rates increasing from 4.5 to 5 per cent last month, hospitality business are under even more pressure to cover rising mortgage repayments.
With extra challenges such as a hugely competitive market and the aforementioned caution that tourists are looking for hotels to pull out all the stops to stand out from the crowd.
Even hotels which allegedly ‘operate very profitably’ can face administration, such as The Dalkeith Hotel in Edinburgh which recently was put up for sale for £33 million. This general uncertainty means that despite all of the recent success, every big investment at the moment can be a gamble for these owners, turning vacations into vacancies if those in the hotel sector fail to maintain a sustainable level of success.
That said, I’m feeling optimistic that with large events like the Edinburgh Festival Fringe and the Glasgow UCI Cycling World Championships just round the corner, this ongoing investment and growth is hopefully here for a long and comfortable stay.
Electric tourist trail could recharge Scotland’s road trips
We’ve all heard of the North Coast 500, a 500-mile-long road trip taking in some of Scotland’s most stunning scenery, but could a new ‘green’ route be set to take its place? ScottishPower recently unveiled plans to create an ‘electric tourist trail’ of car charging points all across the country to encourage those who have made the switch to electric vehicles to tour Scotland by car.
The announcement came as Glasgow Science Centre, which had electric vehicle charging points installed as part of a partnership with the power provider ahead of COP26, reached the milestone of 25,000 electric vehicle miles being charged by visitors.
By partnering with other tourist attractions up and down the country to install additional charging points, it is hoped that more tourists will opt to road trip around Scotland in their electric vehicles.
The North Coast 500 is an incredibly popular route which generates significant amounts for the Scottish economy every year, so I think this kind of route is a fantastic idea as sales of electric cars continue to rise.
Many would be put off the idea of a Scottish road trip in an electric vehicle given the perceived lack of charging points, particularly in more remote parts of the country, so this kind of initiative makes perfect sense.
I’d like to hear more about how they’ll encourage and incentivise more tourist attractions to take up the offer and I look forward to seeing how this plays out.
It Made Me Laugh
Fringe comedian hits home with satirical skit
As the month of August looms, it can mean only one thing for residents of Edinburgh – the Festival Fringe is almost upon us. Love it or loathe it, the impact the festival has on the Capital is undeniable.
One comedian who is set to perform at the Fringe has taken to TikTok to poke fun at her fellow performers, mocking the often-outlandish characters that descend on the city throughout the festivities.
Laura Ramoso generated over 50,000 likes in under 24 hours with her video which included hilarious one-liners such as “Do you want to see my show right now? It’s a commentary on recycling.” I reckon she’s well and truly hit the nail on the head with this skit.
It Made Me Weep
Glasgow restaurant closes after 22 years
It’s never pleasant to see a much-loved Scottish business being forced to shut its doors so I was saddened to hear about the closure of Brian Maule’s restaurant – Le Chardon d’Or – which first opened in Glasgow’s city centre back in 2001.
After 22 years in business, the team behind the award-winning restaurant announced it had served its last customers, citing the financial burden of the ‘new normal’ as the reason for this decision, including plummeting property values, the cost-of-living crisis, and low footfall as a result of increase home working.
The closure has prompted questions over the future of the hospitality industry across Scotland, with fears that many more restaurants will follow suit over the coming months.
