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Scottish hotels were the UK's best-performing in 2017

Success is attributed to influx of overseas visitors caused by a weak pound.

By STV News

Published 23 Apr 2018.

Hotels in Scotland outperformed those in the rest of the UK last year, according to a report.

The latest Hotel Britain report from accountants and business advisers BDO reveals Scotland posted the strongest performance in the UK in 2017, with average revenue growing by almost 5% in a year to £56.70.

This compared to a rise of just over 4% in Wales, 2.2% in Northern Ireland and just under 2% in England.

The report states: "The story of Scottish hotels in 2017 is one of great success.

"The boom in tourism following the depreciation of the pound after the Brexit vote has attracted record-breaking overseas visitor numbers to Scotland as well as the rest of the UK."

Edinburgh was the top-performing city outside of London last year, according to the publication.

Benefiting from strong leisure and corporate demand, the Scottish capital boasted the highest occupancy levels of any UK city at 85%, an increase of 1.8% on the previous year.

The occupancy rate for Glasgow increased slightly to 83.2%.

However, Aberdeen, which has been hit by the oil industry downturn, experienced the lowest hotel occupancy rate in the UK at 63.4% - a decline of more than 5% on the figures for 2016.

UK-wide, BDO said overseas visitor numbers grew for the eighth consecutive year, setting a new annual record at 38.9 million.

Spending in the leisure and hospitality market also hit record levels at £24.3bn in 2017, up 8% year on year.

Martin Gill, partner and head of BDO in Scotland, said: "2017 proved to be a fantastic year of growth where Scotland outperformed the rest of the UK. Edinburgh was clearly the top performer and Glasgow had another positive year.

"Looking ahead, Scotland has an active pipeline with over 1600 hotel rooms expected to open during 2018 and 2019.

"The strong performance demonstrates the industry's robustness despite facing EU uncertainty and an increase in supply."