Aberdeen's hotel sector suffers losses amid falling oil prices
Tourism market researchers reported 'sustained losses' for the city's hospitality market in 2015.
Aberdeen's hotel sector is suffering because of falling oil prices, new research suggests.
A monthly report from tourism market researchers LJ Research found "sustained losses" for the city's hospitality market in December 2015.
In Glasgow and Edinburgh, hoteliers recorded occupancy growth of 2.7% and 2.1%, respectively, compared to December 2014.
Aberdeen hotels, however, saw a 16.9% drop in occupancy over the same period.
The report stated: "In Aberdeen, hotel market challenges were again starkly evident. Notably below the levels recorded in Glasgow and Edinburgh, just over half (51.6%) of hotel rooms in Aberdeen were occupied in December 2015.
"This signified a drop of 16.9% in occupancy and marked the 15th consecutive month of year-on-year occupancy losses: a gloomy trend which highlights the extent to which ongoing challenges in the energy sector are affecting the Granite City."
The decline in occupancy has been matched by a fall in prices: the average cost of a room in the city tumbled by 19.8% over 12 months to £72.13.
Sean Morgan, Managing Director at LJ Research, said: "With the price of oil hovering at around $30 a barrel and evidence of a significant reduction in demand for accommodation in the coming months, it seems likely that hotel market challenges in Aberdeen will continue into 2016."