This contrasted with the wider UK picture, which showed little profit increase, despite rising room rates.

The data, compiled and produced by Hotstats and analysed by RSM UK, shows average room rates of hotels rose across all categories in Scotland last year. Luxury hotels saw a healthy 12% rise, up from £287.79 in 2024 to £321.86 last year. This was double the UK-wide year-on-year increase of 6% for luxury hotels, from £358.69 in 2024 to £379.14 in 2025.

Average room rates for Scotland’s mid-market hotels also increased 2%, from £124.59 in 2024 to £127.22 in 2025, while budget hotel room rates rose 3%, from £106.23 in 2024 to £109.73. By comparison, UK mid-market hotels ticked up from £135.75 to £141.82, but dipped from £97.77 to £95.83 in the budget market.

Scotland’s gross operating profits per available room (GOP PAR) also rose significantly in the luxury market, up 13.5% from £123.81 to £140.59 last year. In contrast, UK-wide gross operating profits per available room for luxury hotels were flat at £127.53 in 2025, compared to £127.50 the previous year, and dipped from £154.69 to £150.99 in the London luxury market.

Occupancy in Scotland increased, with luxury hotels up from 69.8% in 2024 to 73.0% in 2025. Scotland’s mid-market also saw a modest increase from 78.5% in 2024 to 80.7% last year, while budget occupancy remained almost static, from 77.6% in 2024 to 76.9% last year.

Katie Morrison, partner and head of consumer markets at RSM in Scotland, said: “The luxury hotel market remained particularly buoyant last year despite some challenging headwinds, including increasing wage costs, rising food prices and high energy bills.

“Average room rates in the luxury market saw a healthy increase, and gross operating profits per available room were up considerably.

“Average room rates for the budget hotels were not much lower than mid-market, as budget hotels were forced to increase room rates to cover rising costs. This has clearly impacted budget hotel occupancy rates, which have remained static.

“These trends correlate with what we’re seeing among clients, with luxury hotels in Edinburgh and St Andrews attracting a clientele that’s happy to spend money on luxury experiences, while budget hotels struggle to increase occupancy.”

Ms Morrison continued: “This may seem counter-intuitive in the current economic climate. However, guests are prepared to splash out on high-end experience hotels offering extra facilities such as swimming pools, gyms and golf courses, rather than budget hotels that offer little additional benefits. Price savvy travellers have realised those who book budget hotels often spend more on wider attractions, food and other expenses, increasing overall costs.  

“Many luxury hoteliers in Scotland use vouchers for package deals to get people through the door. Although some of these may be loss-leading, these deals boost occupancy rates, which is preferrable to leaving rooms empty.

“As geopolitical tensions in the Middle East lead to energy price increases, consumers will continue to be budget-savvy, while hoteliers are likely concerned about the impact of energy price rises on their bottom line. A 30% increase in business rates coming soon will also add further pressure.

“Cultural and sporting attractions such as the Commonwealth Games, Edinburgh Festival and Royal Military Tattoo should ensure a steady flow of visitors throughout 2026 though, as these large events unique to Scotland keep visitors returning year after year.”