The data, which is compiled and produced by Hotstats and analysed by RSM UK, shows average room rates of Scottish luxury hotels rose from £393.35 to £491.86 in August year-on-year, and from £164.69 vs £174.70 for mid-market hotels. Room rates in the budget hotel market also bucked the wider UK trend, rising from £140.59 vs £151.21 in the same period.

Gross operating profits per available room were also up for Scottish luxury, mid-market and budget hotels, increasing from £254.25 to £328.93, £87.53 to £95.35, and £75.03 to £79.17 respectively in August year-on-year.

Similarly, occupancy of Scottish luxury hotels saw an increase from 83.8% to 85.6% and rose from 87.8% to 89.2% in the mid-market. However, occupancy ticked down from 88.1% to 83.3% for budget hotels, following the wider UK trend.

Katie Morrison, partner and head of consumer markets at RSM in Scotland, comments: “While Scotland’s luxury and mid-market hotels continue to perform strongly, in line with the wider UK trend, budget hotels are starting to show slight signs of divergence.

“In the UK, budget hotels saw falls across occupancy, room rates and profits in August, whereas in Scotland, room rates and gross operating profits saw a marginal uplift.

“August’s staycation season, bolstered by good weather and major events like the Edinburgh Fringe Festival, has helped sustain demand across Scotland’s hospitality sector. With many travellers opting to stay within the UK rather than travelling abroad, Scotland appears to have captured a greater share of domestic tourism, offering both cultural appeal and value for money.”

Katie Morrison

Ms Morrison added: “Budget hotels, however, are feeling the pinch, with the gap between room rates in budget and mid-market hotels continuing to close.

“This could explain why occupancy levels have dipped, suggesting that consumers may be shifting their preferences towards mid-market options, where the price difference is now less pronounced.

“Looking ahead, this could pose challenges for budget hoteliers, given they already operate on lower margins, which are being squeezed as costs rise and consumers opt for more premium experiences.”

Robyn Duffy, consumer markets senior analyst at RSM UK, said: “Global luxury spending has undergone a clear shift in 2025. The post-pandemic boom in luxury goods is giving way to a preference for high-end travel and experience-led purchases.

“Economic uncertainty and rising prices across major luxury goods, exacerbated by tariffs, are prompting affluent consumers to trade handbags for holidays, redirecting spend from products to experiences. Luxury hotels, first-class airfares and “once-in-a-lifetime” travel are all benefitting from this reallocation of spend.”