For a comprehensive review of the Europe market, click below:
HVS In-Depth Europe Hotel Valuation Index:
2024
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2023
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2022
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2021
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2020
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2019
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2018
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2017
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2016
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2015
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2014
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2013
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2012
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2011
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2010
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2009
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2008
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2007
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2006
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2005
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2004
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2003
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2002
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2001
Brussels, with a population of approximately 1.2 million (2023), enjoys a strategic location in the heart of Western Europe, making it both a regional metropolis and an international hub. In addition to its role as capital of Belgium, the city is home to NATO’s headquarters and is widely known as the ‘capital of Europe’, hosting both the European Parliament and the European Commission. Furthermore, an eclectic and creative facet of Brussels has started to emerge over the last decade or so, represented by its community of artists, architects and designers, and providing the city with new sources of demand.
Arrivals in Brussels grew constantly until 2015. After the terrorist attacks in March 2016 heavily impacted visitation to the city, 2017 showed signs of recovery, primarily coming from the business demand generated by the various EU and international entities based in Brussels, while 2018 saw the return of the leisure segment, leading to a 10.0% increase in visitation that year. The Brussels hotel market continued to recover until the arrival of the pandemic in 2020. 2021 saw the start of recovery, mainly from the summer onwards, leading to a 5.2% increase in hotel values compared to the previous year. However, RevPAR levels remained at just 25.0% of that achieved in 2019. In 2022, Brussels showed strong signs of recovery, both in occupancy and average rate, as a result of leisure and corporate demand starting to rebound, which resulted in substantial average rate growth. Recovery continued throughout 2023, enabling both occupancy and average rate to return to pre-COVID levels.
As of March 2024, there are around 202 hotels in Brussels, providing almost 18,800 rooms. The city’s pipeline includes twelve projects expected to open in the next three years and bringing around 2,600 new rooms to the market. Six of these projects are new developments, mostly located in proximity to the airport and the Brussels Midi station, whilst others are reopenings or conversions of existing properties. For example the former Sheraton Brussels, which closed in 2016, as started to bring rooms back to the market as it completes a full renovation and rebranding as the Cardo Brussels, an Autograph Collection by Marriott. The 532-room property soft-opened 75 rooms in January 2024 and expect the rest of the inventory to be ready for June 2024. After an extensive redevelopment, the landmark Grand Hotel Astoria, acquired by Corinthia Hotels in 2016, will also open its doors in 2024 (September), offering 125 guest rooms. New hotel developments tend to be located around the airport area (some 500 rooms).
Following years of limited transactions for this market around the Covid times, in 2022, there were six recorded sales for a total of €252.9 million, setting a new record for Brussels. While the majority of the transactions took place in the fourth quarter, the most notable included the 252-room Hotel Metropole, which changed hands in November for around €78 million (€310,000 per key); the 246-room NH Brussels Louise bought for €35 million (€142,000 per key) in November; and the 212-room proposed Souverain 25 Hotel (as part of a mixed-use development) for a reported €61.7 million (€291,000 per key). 2023 recorded the acquisition by Honotel of a portfolio of two hotels: the 43-room Argus Hotel Brussels and the 97-room Aqua Hotel Brussels. The price of the transaction, which took place in March, has not been disclosed.
Given the healthy dynamics of this market in recent times, our HVI analysis indicates a value increase of 4.2% in Brussels in 2023 compared to 2022.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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