Europe -  Amsterdam, Netherlands

Amsterdam is the capital and, with 1.3 million residents, the most populous city in the Netherlands. Most of the city’s quality hotels are in the city centre. The modern office districts are on the ring road, particularly to the south, where the Amsterdam RAI convention centre is located. This area is expected to continue attracting further investment from a number of key sectors, including computer services, telecommunications, transport logistics, investment banking and insurance. Furthermore, Zuidas is currently a major development zone, which includes residential and commercial developments, with many multinational companies, the Netherlands’ largest university and a teaching hospital also settling in the area.

As both a commercial and a leisure destination, the city benefits from many different types of demand for hotel accommodation. Therefore, the monthly seasonality is relatively broad across the year; however, owing to the significant influx of leisure tourists, demand spikes on Friday and Saturday nights. The average length of stay was just over 1.9 days in 2017 and the city’s hotels achieved an aggregate occupancy of slightly above 80.0%, one of the highest in Europe. Amsterdam continues to see growth in demand, largely supported by an excellent transportation infrastructure; Schiphol airport has seen another record year, with an increase of 8.0% in passenger figures. Expansion plans are currently underway, and a new terminal is scheduled to open by the end of 2023. Demand for accommodation in the city has shown solid growth over the last few years, with a recorded RevPAR growth of over 10.0% in 2017, driven by both occupancy and average rate. The resulting 5.8% increase in value per room can be explained by a further tightening of valuation parameters due to the continued investment interest in the city.

Amsterdam has had, and continues to have, a strong hotel pipeline for the next two to three years. After a ban was placed on new hotel developments in the canal district in 2015, new projects have moved out to more fringe areas. However, at the end of 2016, the city of Amsterdam implemented further restrictions on new hotel construction in order to better manage tourism flows to the city and to respond to the increasing frustration of locals who feel that they are being driven away from the city as living costs rise. A map with two zones has been established: zone one will see no further hotel development, while zone two will only approve new projects if they add significant value to the area and are in line with the strict development requirements of the respective neighbourhood.

As a prime investment spot in Europe, Amsterdam witnessed a number of hotel transactions in 2017. Some 83.0% of the Netherlands’ single asset transactions volume occurred in the city of Amsterdam in 2017 with highlights including the sale of the 557-room DoubleTree by Hilton Amsterdam Centraal Station for around €356 million (€640,000 per key) by Blackstone to the Anbang Insurance Group; the W Amsterdam, which was acquired for approximately €260 million (€1.1 million per key) by Deka Immobilien from Europe Hotels Private Collection; and the 433-room Hilton Amsterdam Airport, which was sold by Schiphol Real Estate for €148 million (€342,000 per key). In general, we consider Amsterdam to be an attractive city for future hotel investment owing to the strength of its many commercial and leisure demand generators, combined with high barriers to entry.

Change In Value For Market: (€Euro)

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Amsterdam RevPAR Change (€Euro)

Amsterdam RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
sperret@hvs.com
  • +44 20 7878 7722 (w)
Simon Hulten
shulten@hvs.com
  • +44 020 7878-7775 (w)