Europe -  Brussels

Brussels, with a population of approximately 1.2 million, 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. However, described as the ‘new Berlin’ by the New York Times in 2015, an eclectic and creative facet of Brussels has recently emerged, represented by its community of artists, architects and designers.

Arrivals in Brussels grew constantly since the decline observed in 2009 – following the economic crisis – 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 leisure demand was still below previous levels. However, 2018 saw the return of the leisure segment, leading to a 10% increase in visitation. The Brussels hotel market bounced back in 2017 with RevPAR growth of around 20%, and this positive trend continued into 2018 as the market again recorded impressive double-figure RevPAR growth.

The pipeline of new rooms coming to the market represents only 1.5% of the current supply. Brussels is expected to see the opening of approximately 350 rooms in the next few years, spread over three hotels of various categories. The Hotel Royal Botanic, recently put on hold, comprises 75 rooms and was originally planned to open in the second quarter of 2019. The Meininger Hotel Brussels Gare du Midi (150 rooms) is expected to open in the third quarter of 2019, followed by the reopening of the Hotel Astoria (127 rooms), vacant since 2006 and acquired in 2016 by Corinthia in order to be fully renovated into a luxury property. We also note that there are plans to rebrand the 511-room Sheraton Brussels Centre which closed in December 2016, although we understand that the final decision has not been made public yet.

The transaction volume in 2018 decreased to €77 million from the €100.7 million achieved in 2017 and represents a third of the record – €227.5 million – reached in 2016. The most recent transactions include the sale of the Four Points Hotel Brussels sold by Blackstone to Qbic for €10.4 million (€81,250 per key) as well as the portfolio of four aparthotels previously owned by B-aparthotels to Home Invest for an undisclosed price. Overall, Brussels recorded a 6.7% increase in hotel values in 2018.

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%

Brussels RevPAR Change (€Euro)

Brussels RevPAR (€Euro)

For more information, please contact:

Sophie Perret, MRICS, MBA
[email protected]
  • +44 20 7878 7722 (w)
Magali Castells
[email protected]
  • +44 20 7878-7710 (w)
  • +44 7 850205149 (m)