The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy of Scottish hotels remained largely stable, increasing slightly from 78.6% to 78.8% in November year-on-year. This mirrored the wider UK trend, where occupancy rose marginally from 79.5% to 79.7%.

Average daily rates (ADR) of occupied rooms in Scotland also saw a modest increase, rising from £123.60 to £127.25 in November year-on-year. This compared to the wider UK data, where rates rose from £152.84 to £157.55. The resulting revenue per available room (RevPAR) in Scotland grew from £97.14 to £100.21, a modest increase compared to the UK’s growth from £121.49 to £125.62.

However, unlike the broader UK market, where profit margins held steady, Scottish hoteliers saw a decrease in profitability. Gross operating profits in Scotland fell from 30.4% to 29.5% in November year-on-year, while UK-wide margins remained flat at 36.9%.

Katie Morrison, partner and head of consumer markets at RSM in Scotland, said: “While top-line figures in Scotland are holding steady, the real concern is how little of that is reaching the bottom line.

“Unlike the rest of the UK, Scotland’s profit margins are already starting to feel the squeeze. We are seeing the clear impact of rising costs, particularly high staff wages and food prices, which are beginning to erode the sector’s profitability.

“There’s also a significant regional disparity across Scotland. While popular locations such as St Andrews and Edinburgh can command relatively high room rates, other cities such as Aberdeen are generally much lower. For more remote or rural locations that are harder to reach, the pressure is even more acute.”

Ms Morrison continued: “We also saw a sluggish performance in banqueting and conferencing, with revenues per square metre in Scotland rising from £76.44 to £77.07, an increase of only £0.63, compared to a much healthier £4.58 increase across the UK. I’d expect that December figures will show an improvement though, boosted by Christmas and Hogmanay festivities.

“Looking ahead to 2026, the sector faces further headwinds. The introduction of the tourist tax and the reduction in business rates relief, dropping from 40% to 15%, will present additional challenges. While occupancy shows that people are still very keen to travel, operators face a difficult balancing act between maintaining affordable room rates while managing an increasingly expensive operating environment.”