The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows occupancy of Scotland’s hotels in August 2025 remained consistent year-on-year at 87.2%, ahead of the UK (82.1%) and London (84.5%) for the same period.

Scotland’s hotels also saw room rates soaring to a seven-year high of £206.91 in August, up from £191.67 in August 2024. In contrast, average daily rates (ADR) of occupied rooms were flat in the UK (£155.20 vs £154.98) in August year-on-year and down from £214.86 to £210.77 in London.

This meant gross operating profits of UK hotels also fell from 38.1% to 37.5% in August year-on-year and from 41.2% to 39.9% in London. Gross operating profits in Scotland saw a slight uplift for the same period, rising from 49.4% to 50.6%.

Katie Morrison, partner and head of consumer markets at RSM in Scotland, said: “Scotland’s hotel sector continued to outperform the wider UK market in August, bolstered by a double whammy of events, with the Edinburgh Fringe Festival and Oasis reunion concerts bringing in crowds from the UK and overseas.

“This is reflected in the sustained occupancy levels in Scotland, ahead of both London and the UK average.

“Despite rising staffing costs, hoteliers in Scotland were able to push room rates to a seven-year high, a clear sign that demand remains strong and pricing power is returning to the market. International visitors, particularly from the US and Canada, continue to play a key role in Scotland’s tourism economy, with increased flight connectivity and government-backed marketing campaigns helping to drive footfall.

“Looking ahead, Scotland has a strong pipeline of major events including the Commonwealth Games in Glasgow next year, followed by the Tour de France in 2027.

“While these present opportunities for hoteliers to innovate and collaborate with local businesses to provide a tailored, high-quality visitor experience, the incoming tourism levy presents a real challenge.

“Staffing also remains a pressure point, as many businesses are managing rising costs by holding back on recruitment. However, this short-term fix risks stalling future growth.”

She added: “As we approach a period of political transition, with several MSPs stepping down next year, the sector will need to re-establish relationships and advocate for policies that support sustainable development.

“It is therefore important that hoteliers look to embrace new ways of operating, including a shift to long-term thinking and flexible accommodation to future-proof their business models.”

Thomas Pugh, economist at RSM UK, said: “The overall positive performance for the hotel sector over the summer and an increase in hospitality sales in August according to the CGA RSM Hospitality Business Tracker, suggests that output in the food and hospitality sector rose by 0.6% m/m in August, which should help the economy to recover after stagnating in July.

“Admittedly, the outlook further ahead looks more challenging. Inflation rising to 4% at the same time wages are slowing means more gradual real income growth, and it looks like further interest rate cuts will have to wait until next year. The big question, though, is how much speculation about tax rises in the budget will undermine consumer confidence and prevent consumers from spending.

“That said, the outlook for 2026 looks a bit rosier. The worst of the inflation and labour market pain should be behind us by then and with the saving rate at a historically high level there is plenty of scope for households to save a bit less and spend a bit more, assuming, of course, that the budget doesn’t hand us any unwelcome surprises.”