The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy of Scotland’s hotels reached 86.2% in July, up from 84.9% the previous year, and similar to the UK-wide picture, which also reached 86.2% in July, up from 85% the previous July.

Average daily rates (ADR) of occupied rooms saw a more modest rise in Scotland, from £181.82 to £182.64 in July year-on-year, compared with a bigger jump from £180.36 to £184.34 in the UK.

Gross operating profits in Scotland also ticked up slightly, from 46.3% in July 2024 to 46.5% in July 2025, just above the UK figures of 44.2% to 44.5% year on year.

Katie Morrison, partner and head of consumer markets at RSM in Scotland, comments: “School holidays, more staycations and one of the hottest summers on record all brought a welcome boost to Scotland’s hotel sector in July.

“The UK’s sizzling summer sun is likely to have helped draw in international tourists, and also encouraged domestic travellers to staycation in Scotland. The European heatwave may also have proven too much for some, putting them off flying further afield.

“Those currently feeling the pinch in their pockets of the cost-of-living crisis may also have opted to stay closer to home. This meant hoteliers could charge slightly higher room rates to reflect this higher demand, which they’ve struggled to do in previous months. Gross operating profits also improved slightly on the previous year, with higher room rates providing some relief from the various cost pressures hitting the sector.”

Katie Morrison

Ms Morrison continued: “In the short term, we’d expect to see this positive picture continue into August, boosted by big events including the Edinburgh Fringe Festival and the Oasis reunion tour.

“In the longer-term though, Scotland’s hotel sector faces some potential headwinds from the new tourism levy. Some hoteliers, particularly those with multiple hotels across several council districts, may see their administration costs rise significantly as they implement what could be several different schemes.

“Hoteliers are keen to understand more about how the schemes will work in practice, as the current uncertainty makes it difficult for them to plan ahead.”

Thomas Pugh, economist at RSM UK, said: “The improvement in the hotel sector in July chimes with other data, such as the jump in the PMI in August and rising consumer confidence, which suggests the UK services sector is leading the economic recovery.

“Admittedly, there are some gathering headwinds. Rising inflation combined with a looser labour market will mean weaker real pay growth. It now looks unlikely that there will be another interest rate cut this year and speculation about rising taxes in the Autumn Budget will dent confidence.

“However, household incomes have risen sharply since the pandemic and savings levels are high. That gives consumers ample opportunity to save a bit less and spend a bit more. The key variable is going to be how consumer confidence holds up in the run up to the budget.”