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February 26, 2015
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UK: Aberdeen hotels hit by oil price drop as occupancy falls

Occupancy rates and profits have been falling in Aberdeen since the slump in oil prices, though room rates rose. 

The city's hotels got off to a poor start to the year, according to the latest HotStats data, registering negative year-on-year comparisons across all key performance indicators - apart from the average room rate, which rose by 2.1 per cent.

Occupancy levels fell by 3 per cent in January, compared with the previous year, meaning the revenue per available room (RevPAR) fell by almost 3 per cent to £63.74. 

Last month, M&IT reported that the dramatic fall in oil prices had resulted in a reduction in the number of energy-related events in Aberdeen.

Aberdeen Exhibition and Conference Centre (AECC), which can be reliant on the energy sectors for up to 50 per cent of its turnover in years when it hosts the huge SPE Offshore Europe, said some oil companies have cut back on events in response to the fall in oil prices from around USD$110 (£73) per barrel to under USD$50 (£33) per barrel.

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