Hotels estate agent argues against ‘over-supply’ claims
Thursday, March 5, 2020
Property consultancy, Colliers International, has published new figures indicating that claims of an over-supply of hotel rooms in Edinburgh are false.
The Edinburgh Hotels Association (EHA) has recently reported a slump in demand for hotel rooms in the city.
Colliers said that 2019 had seen a “slight decrease” in room occupancy (0.9% decrease). The average room price also decreased slightly from £103.72 to £101.72. However, the report also highlighted that the number of rooms in the city grew by 1,448 and total revenue increase to £505.7 million (previously £474.9 million).
The EHA, however, claims that the recent increase of hotel rooms has left some businesses in a “fragile” way. It also claimed that Edinburgh no longer had the most expensive hotel rates in the UK out width London.
With the EHA and Colliers International have different view, a spokesman for Colliers International did agree that the introduction of the tourist tax posed a genuine threat to the industry.