A new report has predicted challenging conditions for Scotland’s hoteliers, as recovery looks set to stall following stronger demand for rooms than expected in 2022 – despite thousands of additional rooms being added across city centres.
PwC’s annual UK Hotels Forecast for 2022-23 stated that hotel performance in Scotland is closely linked to GDP, meaning that after a relatively strong start to 2023, regional performance is expected to tail off and turn negative by the third and fourth quarters, ending the year with occupancy growth of just two percentage points on 2022.
In real terms, the annual daily rate (ADR) is set to fall gradually throughout the year to just below pre-pandemic levels.
