Aberdeen Hotel Opportunities

www.sdi.co.uk

Aberdeen Hotel Opportunities

The Top Ten Facts You Need To Know

1. Aberdeen is Scotlands third city with a population of
more than 200,000.
2. Its thriving oil and gas industries account for more than
40,000 jobs (source: Aberdeen Convention Bureau) and has
earned it the title Energy Capital of Europe.
3. Global energy giants including BP, Chevron, Halliburton,
Marathon Oil, Shell and Total have a significant presence
in the city.

4. Aberdeen boasts the second highest rate of business

formation in Scotland with 900 energy companies and 400
internationally owned companies.
5. Tourism in Aberdeen generates more than 550 million
per year and supports more than 20,000 jobs.
6. World class hotel operators such as Hilton, Marriott,
Jurys Inn, Holiday Inn, Mercure, Radisson and
Malmaison have a presence in the city.
7. Aberdeen currently has more than 6,000 hotel rooms and
world-class conference facilities which can handle up to
2,000 delegates (source: Aberdeen Convention Bureau).

8. Aberdeens Gross Value Added (GVA) per capita is well

ahead of the UK average at nearly 30,000.
9. Weekly earnings in Aberdeen outstrip the Scottish
average, while the city has one of the countrys lowest
unemployment rates at just over 2%.
10. Aberdeen Airport is Scotlands third busiest, handling
nearly 3.1 million passengers in 2011 (source: BAA
website). Its helipad, which supports offshore industries
and rescue services, is one of the busiest in the world.

The area is already known for its dramatic scenery and opportunities for outdoor pursuits. The
strengthened hotel offering, combined with the new 250 million Union Square retail development and
the further modernisation of the Bon-Accord shopping centre which has seen an influx of brands such
as Karen Millen, Swarovski, Hobbs, Jo Malone, Kurt Geiger, Radley and Phase 8, make the region even
more attractive as a holiday and short-break destination.
With increased activity in the oil and gas sector, significant growth opportunities in renewables and a
thriving business base operating globally, Aberdeen City and Shires economy continues to outperform
other city regions in Scotland and the UK.

Tom Smith Chairman, Aberdeen City and Shire Economic Future (ACSEF)
Dunnottar, Stonehaven

Why Invest in Aberdeen?

Aberdeen is a thriving and cosmopolitan city. Situated in the countrys north east corner,
it has ancient roots dating back over a thousand years giving it a strong sense of history,
while its booming oil and gas industries make it the proud Energy Capital of Europe.
Aberdeenshire is renowned on the world tourism stage as an area of outstanding natural
beauty and in the tourism sector demand is currently outstripping supply.
Malmaison, Aberdeen
Bed Spaces: There are more than 6,000 hotel rooms
currently available in Aberdeen and the city presents
an exciting opportunity for hotel operators, developers
and investors, particularly in the four to five star luxury
segment.
Occupancy Rates and Performance: Aberdeens hotel
occupancy rates are among the highest in the UK, with the
offshore oil and gas industry ensuring year-round demand.
A shortage of rooms, particularly in the four to five star
luxury segment, means visitors are often forced to look
elsewhere due to a lack of availability in the Aberdeen city
area. The average annual occupancy rate in 2011 was 73.8%
Business Tourism: Aberdeens hotel guests are
predominately business travellers, with this group
representing around three quarters of all visitors.
Expenditure by business visitors is twice that of leisure
visitors and there is particularly high demand from
offshore workers for accommodation between Monday
and Thursday.
Aberdeen Convention Bureau: Aberdeen has hosted a
range of international conferences and events including
the World Heavy Oil Congress, the European Conference
on Entrepreneurship and Innovation, the World
Conference in Marine Biodiversity and the International

Federation of Agricultural Journalists. Being a global

energy hub, Aberdeen is a key destination for industry
events such as the biennial Offshore Europe Exhibition
and Conference and the annual renewables conference and
exhibition, All-Energy. Help is at hand for the organisers
of major conferences and events through the Aberdeen
Convention Bureau which provides a wide range of support
functions such as venue and accommodation booking.

Aberdeen Exhibition and Conference Centre (AECC):

For 25 years the AECC has demonstrated its flexibility as a
venue by hosting congresses, trade and public exhibitions,
rock and pop concerts, live sporting events, award dinners
and corporate dinner dances. Facilities include seating
for up to 2,000 delegates and 7,300 sq m of purpose-built
exhibition space (source: Aberdeen Convention Bureau).
International Connectivity: Aberdeens air, road and
rail links connect the city to the rest of the UK, Europe
and beyond. Aberdeen Airport is just six miles from the
city centre and offers scheduled flights to a wide range
of destinations including major European cities such as
London, Paris and Amsterdam. Plans to extend the runway
have recently been approved, allowing longer range
aircraft to serve the city. Aberdeen is also easily accessible
via the M90 motorway and other road links, while regular
train services place Aberdeen within reach of the major

Scottish towns and cities, and further south via the east
coast mainline. Aberdeen Harbour handles around five
million tonnes of cargo valued at around 1.5billion
every year (source: aberdeen-harbour.co.uk), for a wide
range of industries. It is also the centre of activity for the
offshore oil and gas industrys marine support operations
in North West Europe.
International Popularity: While steeped in history,
Aberdeen is a modern cosmopolitan city with a striking
skyline of granite buildings and modern contemporary
architecture, as well as a lively social scene and ample
shopping and leisure facilities. It is the perfect base from
which to explore some of the spectacular surrounding
countryside. The rugged North East coastline is home to
pretty fishing villages and stunning beaches, while lush
farmland and picturesque hamlets await visitors inland.
Aberdeen is also surrounded by historic castles and some
of the worlds top golf courses, while whisky enthusiasts
flock to the distilleries in nearby Speyside. Many visitors
use Aberdeen as a base to explore Royal Deeside, the
area around Braemar and Ballater where the River Dee
flows from the Cairngorm mountains through stunning
countryside past Balmoral Castle, which lies in the
shadow of Lochnagar Mountain.

Why choose Aberdeen?

A cosmopolitan vibe, flourishing arts scene and lively caf culture.

World Travel Guide

The powerhouse of the north east.

Lonely Planet

Latest Key Performance Indicators

for Aberdeen from STR Global:
March
2012

March
Year to Date

Annual
2011

Occupancy Rate

75.4%

71.4%

73.8%

Average Daily Rate

75.21

75.17

71.40

Rooms Yield (RevPar)

56.69

53.68

52.72

The Energy Capital of Europe has a highly skilled workforce

with thousands of people employed in the oil, gas, engineering
and science sectors, and many more in the supply chain
for these industries. The population is cash-rich and highspending, while the citys industrial strength attracts a steady
flow of affluent visitors.
A 350 million project is also underway to improve the
citys transport infrastructure through the creation of the
Aberdeen Western Peripheral Route. Backed by the Scottish
Government, the road is being developed by Transport
Scotland the national transport agency in partnership with
Aberdeen City and Aberdeenshire councils. The AWPR is one
of a number of transport projects planned to help improve
road safety and accessibility, reduce congestion and grow the
local economy.
Education in Aberdeen has a strong tradition with two famous
universities and Scotlands largest further education college.
Around 30,000 students attend the University of Aberdeen
and Robert Gordon University, which was named the Sunday
Times Scottish University of The Year 2011. Aberdeen College
has several campuses throughout the city and there are
12secondary schools and 54 primary schools within the city
boundary, in addition to a number of private schools.

Aberdeen Harbour

Aberdeen has an array of attractions and facilities to offer

visitors and residents, ranging from art and culture to sport
and shopping. There are four major shopping centres located
within walking distance of each other, and the recently opened
250 million Union Square development is the second largest
shopping and leisure complex in Scotland. The nightlife is
varied and lively with bars, clubs and casinos to suit all tastes.
The newly-branded Merchant Quarter in the historical area
around The Green aims to be the beat and soul of the city,
catering for visitors and locals looking for a less conventional
experience with quality hotels, restaurants, cafes and bars,
independent shops and boutiques.
Aberdeen has superb dedicated sports facilities and a
beautiful beach. The surrounding countryside is ideal for
awide range of outdoor pursuits such as golf, hill walking,
salmon fishing, estate shooting and horse riding.
Other city developments include a 140 million plan to
transform the centre of Aberdeen by creating a new civic
square at Union Terrace Gardens to provide the city with an
accessible, safe, connected and vibrant public space, while
thenew 57 million University of Aberdeen Library could
provide a dramatic venue for future events.